ICICI Bank shares erased all morning gains and were trading lower. The ICICI Bank stock price fell to a low of Rs 357.70 per share, down 5.01 percent from the day’s high of Rs 376.60 per share. At 12.34 PM, the ICICI Bank stock was trading at 359.70 per share, down 1.5 percent from its previous close.

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The stock jumped as much as 3.10 percent to Rs 376.60 per share intraday on the BSE after the bank terminated MD and CEO Chanda Kochhar as an independent probe indicted Kochhar for violating various regulations in the Videocon loan case. The ICICI Bank

also on Wednesday reported a 2.7 percent year-on-year fall in net profit at Rs 1,604.9 crore for the third quarter ended December 2018, from Rs 1,650.24 crore a year ago.

Analysts maintained a positive view of the stock. Axis Capital rated the stock 'buy', with a target price of Rs 500 per share, saying that bank's Q3 numbers showed a sign of stabilising financial performance. "Slippages showing signs of normalization, margin improving, share of retail on a rise and adequate provisions on NCLT," it noted.

CLSA retained a 'buy' rating on the stock and raised the price target to Rs 470 per shares from Rs 450 per share, saying visibility of earnings turnaround rises. Strong Casa franchise should aid market-share gains in loans, it added.

"ICICI Bank continues to show promise with trending lower new NPL formation," said Jefferies. The brokerage has a 'buy' rating and raised the price target to Rs 450 per share from Rs 385 per share.

The private bank, which had previously given a clean chit to Kochhar in the case, has decided to treat her resignation as 'Termination for Cause'. The bank has stopped all unpaid retirement benefits and will also recover bonuses paid to her since 2009.

In response, Kochhar said she is utterly disappointed, hurt and shocked by the bank's decision, and continues to have belief in her conduct as a professional. "I reiterate that none of the credit decisions at the bank are unilateral and I am certain that truth will ultimately prevail," she said.

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First Published:Jan 31, 2019 10:06 AM IST