Shares of ICICI Bank plunged due to Q1 results and concerns over asset quality.

The stock fell as much as 3 per cent to Rs 298. It posted the biggest intraday percentage loss since April 20.

The country's third biggest lender by assets had posted an 8 per cent drop in Q1 profit on Thursday although bad loan additions, or slippages, were the lowest in seven quarters.

Morgan Stanley expects ICICI Bank's slippages and credit costs in 2017/18 to stay elevated. It has retained its rating on the stock as 'underweight'.

“ICICI Bank reported a soft quarter with no clarity on the asset quality 'rabbit hole' contrary to street's expectation of things getting better,” says Jefferies.

Nomura analysts say the bank's core operating performance was weak and asset quality performance and the management's commentary was 'uninspiring'.

ICICI has the highest non-performing loans in absolute terms among non-state banks.