Pick City Union Bank: Bhavin Shah

Bhavin Shah of Equirus Securities told CNBC-TV18, "We like City Union Bank and it's one of our top pick in the midcap banking sector. The bank has done good job especially on relative basis managing the asset quality, they have not taken the risk that we associated with other banks, the interest rate risk in their portfolio is low given that they rely more on floating rate interest, deposit base is stable, 90 percent of deposits are retail and they have been able to maintain the return on assets around 1.5 percent lower on consistent basis for a very long time."

"We believe that this stock can continue to deliver although recently it has seen a move along with the rest of the sector. It can give another 30 percent return over next six months even without applying any kind of aggressive valuation, the company continues to earn more than 20 percent RoE on a consistent basis and growth profile also looks pretty healthy," he said. Disclosure: He covers the stock but he does not have any personal holding in it.