YES Bank appoints Vinay Tonse as CEO, to take charge in April

YES Bank has appointed Vinay Muralidhar Tonse as its managing director and chief executive officer, marking a leadership transition at the private sector lender as it moves beyond its post-crisis reconstruction phase.

The bank said Tonse will assume the role on 6 April, succeeding incumbent chief executive Prashant Kumar, who has led the lender since its rescue and restructuring in 2020.

Tonse has joined YES Bank as CEO-designate after receiving approval from the Reserve Bank of India last month, the bank said in a statement on Thursday.

Leadership transition after reconstruction

Kumar, who took charge during YES Bank’s crisis and government-backed reconstruction, will step down after serving three terms.

His departure comes shortly after Japan’s Sumitomo Mitsui Banking Corp. (SMBC) acquired a 24.2% stake in the lender, strengthening the foreign bank’s presence in India’s financial sector.

According to Reuters, India’s central bank has recently shown greater openness to foreign investment in domestic banks, signalling a shift in policy aimed at strengthening capital and governance in the sector.

In January, the Reserve Bank of India also allowed SMBC to operate a wholly owned subsidiary in India, expanding the Japanese lender’s footprint beyond its existing branch network in New Delhi, Mumbai, Chennai and Bengaluru.

Extensive banking experience

Tonse brings more than 35 years of experience in banking, spanning retail, corporate and international operations.

He most recently served as managing director at State Bank of India, where he led the lender’s vast retail banking operations.

At SBI, Tonse oversaw a retail loan book of roughly ₹16 trillion, a portfolio significantly larger than YES Bank’s current lending base.

Earlier in his career, he worked in Singapore and headed SBI’s overseas operations in Osaka, Japan, reflecting experience in international markets.

He also served as managing director and chief executive of SBI Mutual Fund between August 2020 and December 2022.

Board-backed succession plan

YES Bank said Tonse’s appointment followed an extensive search conducted by its nomination and remuneration committee as part of a structured succession planning process.

Nandita Gurjar, an independent director and chairperson of the committee, said the board had unanimously recommended Tonse’s appointment.

“The committee recognised his leadership track record, strong governance orientation and ability to guide the organisation’s next phase of growth and transformation,” she said in a statement.

Rajeev Kannan, a non-executive director at YES Bank and senior executive at SMBC, said Tonse’s experience across global banking markets would help steer the bank’s strategy.

“As the largest shareholder, SMBC looks forward to working closely with Vinay and the board to support YES Bank’s journey towards becoming a top-tier private sector bank,” he said.

Growth challenges remain

Despite stabilising after its restructuring, YES Bank continues to lag some peers in key performance indicators.

The bank reported a 5.5% year-on-year increase in deposits to ₹2.9 trillion in the third quarter of FY26.

That growth trails competitors such as IDFC First Bank and Federal Bank, which reported deposit growth of 24% and 11.8% respectively.

Profitability metrics also remain under pressure. YES Bank’s net interest margin stands at around 2.6%, below IDFC First Bank’s 5.7% and Federal Bank’s 3.18%.

Shares of YES Bank ended nearly 1% lower at ₹19.34 on the NSE following the announcement.

Next phase for the lender

Tonse said his focus will be on strengthening YES Bank’s retail and corporate banking franchises while expanding the branch network.

He also emphasised the importance of maintaining strong governance and risk management as the bank seeks to rebuild market confidence.

The leadership transition signals a new phase for the lender, which spent the past several years stabilising its balance sheet after the 2020 crisis.

With fresh capital support from SMBC and new leadership at the helm, YES Bank will now attempt to accelerate growth while closing the performance gap with larger private sector rivals.