Goldman starts coverage of ING Vysya with 'buy'

Says the lender has improved its profitability over the past five years

Goldman Sachs started coverage of ING Vysya Bank with a "buy" rating and a price target of Rs 640, saying the lender has improved its profitability over the past five years and is on course to deliver a 16 bps improvement in return-on-assets in fiscal years 2013-2016.

Goldman says ING Vysya "is on a firm footing in the current tough macro environment" due to an estimated Tier I ratio of about 14.2%, coverage ratio of 89%, and a diversified loan book.

Shares of ING Vysya were up 2.46% at Rs 502.10.