bhagavān - the lord; sarva - of all; bhūta - created beings; īśaḥ - the master; śaraṇyaḥ - the giver of shelter; bhakta - to his devotees; vatsalaḥ - compassionate; vareṇa - with a choice of benedictions; chandayām āsa - gratified him; saḥ - he, Bāṇa; tam - him, Lord Śiva; vavre - chose; pura - of his city; adhipam - as the guardian.

The lord and master of all created beings, the compassionate refuge of his devotees, gladdened Bāṇāsura by offering him the benediction of his choice. Bāṇa chose to have him, Lord Śiva, as the guardian of his city.