MUMBAI: A month after receiving approval from the Reserve Bank of India, YES Bank has appointed Vinay Muralidhar Tonse as its managing director and chief executive officer for a three-year term, the private sector lender said in a release on Thursday.
Tonse has joined the bank as managing director and chief executive officer-designate and will take over from incumbent Prashant Kumar effective 6 April.
Kumar, who has led the bank since its reconstruction in 2020, will step down after three terms and following the acquisition of a 24.2% stake in the lender by Japan’s Sumitomo Mitsui Banking Corp. (SMBC)
In January, the central bank allowed SMBC to operate a wholly owned arm in India, four months after the Japanese financial services giant acquired the stake. SMBC currently operates in India in branch mode from offices in New Delhi, Mumbai, Chennai and Bengaluru.
Nandita Gurjar, independent director and chairperson of the nomination & remuneration committee (NRC) and customer service committee of YES Bank, said the committee conducted an extensive search and evaluation process as part of the board’s structured succession planning efforts.
“The committee unanimously recommended Mr. Tonse’s appointment, recognizing his exemplar leadership track record with strong governance and ability to drive the organization’s next phase of growth and transformation,” she was quoted as saying in the release.
Tonse brings more than 35 years of experience across treasury, retail banking, corporate banking, international operations, and asset management. He most recently served as managing director at the country’s largest lender, State Bank of India (SBI), where he headed retail operations, overseeing a book of around ₹16 trillion, more than six times YES Bank’s entire loan book, and strengthening SBI’s customer franchise and balance sheet.
Earlier, he worked in Singapore for two years and headed SBI’s overseas operations in Osaka, Japan, for four years. He also served as managing director and chief executive officer of SBI Mutual Fund between August 2020 and December 2022.
In the release, Tonse said he remains “deeply committed” to creating long-term value for the bank’s stakeholders. The focus, he said, will be on growing the bank’s retail and corporate banking franchises, expanding the branch network and reinforcing strong governance, risk management and customer-centric growth.
YES Bank reported a 5.5% year-on-year rise in deposits to ₹2.9 trillion in the third quarter of FY26, lagging peers such as IDFC First Bank Ltd and Federal Bank Ltd, which posted growth of 24% and 11.8%, respectively. The lender also trails peers on margins, with a net interest margin (NIM) of 2.6%, compared with 5.7% at IDFC First Bank and 3.18% at Federal Bank.
Rajeev Kannan, non-executive director of YES Bank and a senior executive at SMBC, said Tonse’s experience across Japan and Singapore, combined with his understanding of India’s financial ecosystem, positions him well to lead the bank.
“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, anchored in strong governance, sustainable growth and customer centricity,” he said.
Shares of YES Bank ended nearly 1% lower at ₹19.34 on the NSE.
