The Reserve Bank of India (RBI) has approved the appointment of Vinay Muralidhar Tonse as the Managing Director and CEO of YES Bank for a three-year term. Tonse, a seasoned veteran from the State Bank of India (SBI), succeeds Prashant Kumar, whose leadership was instrumental in stabilizing the lender following its 2020 rescue. This transition marks a shift from a period of reconstruction to one of strategic expansion.
Tonse brings formidable experience in retail business and operations, having served as a Managing Director at SBI until late 2025. His background is particularly relevant as YES Bank looks to improve its operational efficiency and deepen its retail footprint. The lender recently reported a 55 percent year-on-year surge in standalone net profit for the December quarter, reaching Rs 952 crore, indicating that the bank is now operating from a position of financial strength rather than one of survival.
What truly defines the future of YES Bank, however, is the concurrent regulatory shift involving Sumitomo Mitsui Banking Corporation (SMBC). The RBI has granted in-principle approval for the Japanese giant to establish a wholly-owned subsidiary in India. SMBC is already YES Bank’s largest shareholder, holding a 24.22 percent stake. Market analysts suggest that the subsidiary structure provides the legal framework necessary for SMBC to potentially increase its stake further, should it seek a controlling interest.
For YES Bank, this leadership change and the SMBC development portends a move toward becoming a more globalized, tech-driven institution. Tonse’s expertise in large-scale retail operations aligns with the bank’s goal to leverage SMBC’s global strength in trade finance and cross-border solutions. The “SBI DNA” remains at the helm, ensuring continuity in governance and risk management, but the strategic horizon has shifted. The focus will no longer be on merely managing non-performing assets, but on competing for market share in a landscape increasingly influenced by international capital and digital transformation.
