Sent into bat, Gujarat were bowled out for 117 with Bangar returning impressive figures of five for 12. Railways then moved to 145 for two before the stumps were drawn on the opening day.
At close, Nitin Bhille and Bangar were batting on nine and five, respectively.
Railways now lead by 28 runs with eight wickets remaining in the first innings.
After Bangar's magic with the ball, Paunikar took centrestage smashing 85 runs off 104 balls. He struck 12 fours and two sixes during his entertaining knock at the East Coast Railway Sports Association.
Skipper Parthiv Patel was the lone Gujarat batsman to make an impression as he made 55 off 60 balls and struck nine boundaries.
Brief scores:
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Gujarat: 117 all out in 48.5 overs (Patel 55; Bangar 5/12)
Railways: 145 for two in 38 overs (Paunikar 85).