City Union Bank can see an upside of 18-20%: Prakash Diwan, Networth Stock Broking

Prakash Diwan, Head - Institutional Business, Networth Stock Broking, in a chat with ET Now talks about City Union Bank.

What is your take on the chart of City Union Bank?

It is one of the smaller banks which has eminent potential of being a very deserving acquisition target. More than the QIP, I think the buzz is around some of these smaller banks where now that people have started realising that the banking licence is not something which is very easy to get through, it is quite likely that some of these acquisitions targets would start floating around in terms of interest level.

City Union also has a very clean balance sheet, it has done pretty well for itself in cleaning it up for the last 6 quarters continuously. It deserves a price of about 60 which would probably mean an upside of 18-20% from here on the in the next 3 to 6 months.