ICICI Bank share price: India\u2019s largest private sector lender ICICI Bank share price surged on Monday after global brokerage firm Morgan Stanley said that ICICI Bank is its preferred pick in the banking space. ICICI Bank share price gained as much as 4.7% to hit the day\u2019s high at Rs 329.85. According to Morgan Stanley, higher rates and the ongoing NBFC turmoil are set to improve large banks' positioning even more. \u201cWe expect more liquidity to flow to them in the current setting. The RBI's move on LCR also helps release liquidity. SOE (state-owned enterprises) banks have liquidity and could benefit if growth capital is infused. Apart from NBFCs, mid-sized or small banks will face higher funding cost and slower growth, which is not priced in,\u201d Morgan Stanley noted in its report. \u00a0 Also read:\u00a0Share market LIVE updates: Sensex slips into red on profit booking, Nifty below 10,300; RIL shares down over 3% The research firm now expects larger banks to do well in the coming years. \u201cThe large corporate lenders showed a decline in PPoP (Pre-provisioning operating profit) market share to 29% (from 32% five years ago). However, given the above backdrop and increased focus on retail, we expect their PPoP market share to rebound to 32% over the next three years,\u201d the brokerage house said. Morgan Stanley has an \u2018overweight\u2019 rating on the shares of ICICI Bank with a target share price of Rs 460. The target share price implies an upside of more than 35% from the current market price. \u00a0The firm has turned underweight on private sector lenders Yes Bank and RBL Bank. Morgan Stanley has an equal-weight rating for AU Small Finance Bank. RBL shares plunged by as much as 9% to hit the day\u2019s low at Rs 459.75 on the development.