YES Bank has secured Reserve Bank of India (RBI) approval for Vinay Muralidhar Tonse to serve as its next Managing Director and Chief Executive Officer. The appointment, announced on , is for a three-year term and is contingent upon shareholder approval.
Tonse will succeed Prashant Kumar, who has been at the helm of the private sector lender during an extended period. Kumar’s current term is scheduled to conclude on , following a six-month extension granted by the regulator effective .
The move marks a continuation of leadership transitions at YES Bank, which underwent a significant restructuring in with support from the RBI and a consortium of banks led by State Bank of India (SBI). Kumar was initially appointed as administrator during this reconstruction and subsequently as MD & CEO, receiving a prior extension for a three-year period until .
Like his predecessor, Tonse brings extensive experience from SBI, where he most recently served as Managing Director, heading the bank’s retail operations until . Prior to that role, he held the position of Deputy Managing Director at SBI, overseeing corporate group accounts responsible for managing large corporate clients, a position he held from .
YES Bank initiated the search for new leadership considering both Kumar’s preferences and the bank’s future growth requirements, according to a statement released by the bank. The RBI granted its approval in a letter dated , with Tonse’s tenure commencing upon assuming charge.
The bank confirmed that Tonse is not barred from holding a directorial position by the Securities and Exchange Board of India (SEBI) or any other statutory authority, ensuring compliance with relevant stock exchange regulations.
The appointment of Tonse comes after a period of strategic adjustments for YES Bank, including a recent investment from Sumitomo Mitsui Banking Corporation (SMBC). The six-month extension granted to Kumar was, in part, intended to allow SMBC sufficient time to formulate the bank’s long-term strategy and determine its leadership preferences.
The transition at YES Bank occurs within a broader context of evolving dynamics in the Indian banking sector. The RBI’s oversight of the leadership change underscores its continued focus on maintaining stability and promoting sound governance within the financial system. The bank’s statement emphasized its commitment to shareholder approval, signaling a transparent process for finalizing the appointment.
Tonse’s experience in retail banking, operations, and large-scale financial services management is expected to be instrumental as YES Bank navigates its next phase of growth. His background at SBI, a leading public sector bank, provides a strong foundation for addressing the challenges and opportunities facing the private lender.
