RBI Approves Appointment of Former SBI MD Vinay Tonse as Yes Bank MD & CEO

The Reserve Bank of India (RBI) on Tuesday approved the appointment of Vinay Muralidhar Tonse as the new Managing Director (MD) and Chief Executive Officer (CEO) of Yes Bank. Tonse will succeed Prashant Kumar, who is currently serving an extended term as the MD and CEO, the private sector lender said in an exchange filing.

Tonse has been appointed for a period of three years, subject to approval from the bank’s shareholders. His appointment comes at a time when the bank is in the middle of a major leadership reset and strategic overhaul following changes in its shareholding structure.

Before joining Yes Bank, Tonse was the Managing Director (Retail Business & Operations) at State Bank of India (SBI) until November 30, 2025. With extensive experience in retail banking and operations, he is expected to help Yes Bank strengthen its retail franchise, improve operational efficiency and expand its customer base, according to multiple reports.

In its filing, Yes Bank also clarified that Tonse is not debarred from holding the office of a director by any order passed by SEBI or any other authority.

The leadership transition coincides with a significant ownership change at Yes Bank. In late 2025, Japan's Sumitomo Mitsui Banking Corporation (SMBC) acquired a 24% stake in the lender in a deal valued at over $1.9 billion. The transaction involved SMBC buying shares from SBI, which divested a 13.18% stake, as well as from private lenders like Axis Bank, HDFC Bank and ICICI Bank.

These banks had earlier invested in Yes Bank as part of a 2020 rescue plan led by RBI, after the lender faced severe financial stress due to bad loans, weak governance and erosion of depositor confidence. The regulatory mandate requiring these banks to hold the stock for three years. With Yes Bank stabilising its balance sheet and returning to profitability, the original rescuing banks chose to gradually exit as the holding period had also passed.

The SMBC deal also included the appointment of two non-executive directors from the Japanese megabank to the Yes Bank board.

Notably, Yes Bank's troubles can be traced back to issues during the tenure of its founder and former CEO Rana Kapoor. Kapoor was removed in 2019 amid concerns over governance lapses and rising non-performing assets. He has since been investigated by enforcement agencies in multiple cases, leading to his arrest in 2020. 

Last year, he was also interrogated by the Enforcemnet Directorate over an alleged link to loans extended to companies associated with Anil Ambani's Reliance Group. Investigators have alleged that certain loans were part of fraudulent transactions.