Maintain BUY with TP of Rs 196 (2.75x Sept-19 ABV of Rs 71). CUB's SME lending franchise is core to our thesis. Our bull thesis on City Union Bank (CUB) was reconfirmed during our recent drive through Karnataka, Kerala and TN. CUBs stronghold state (TN) has apparently faced macro headwinds over the trailing two years, but our checks with CUBs branches and clients revealed that (1) Stress is under control, (2) Our growth assumptions (~19% loan CAGR over FY18-20E) are likely to be exceeded, (3) NIMs have crossed a near-term peak but are not structurally challenged.