Shares of private lender Yes Bank opened 10% in the red after it reported its third-quarter earnings over the weekend, which were below sector analysts’ expectations.

The shares also reacted to the Bombay High Court judgment cancelling the Rs 8,300 crore Additional Tier 1 (AT1) bonds written down by the bank’s administrator on June 14, 2020.

On Friday, the division bench of Acting Chief Justice S V Gangapurwala and Justice S M Modak delivered judgment on a series of petitions challenging the decision. In its ruling, the court said that the final Yes Bank reconstruction plan issued by RBI did not cover its write-down/cancellation of AT-1 bonds.

“The final scheme approved by the central government does not contain clause or provisions to write down the AT-1 bonds,” the court said.

Turning to the bank’s third-quarter earnings, net profit fell 80% to Rs 51.5 crore in the third quarter of the 2022-23 financial year, the bank said in a regulatory filing. Yes Bank informed the stock exchange that its net profit for the third quarter of FY23 was adversely affected “due to ageing-related regulations”.

Yes Bank also said its cost-to-income ratio had improved to 70.7% as operating expenses slowed compared to revenue growth. The bank expects senior development to track future deposit growth.