RBI gives Yes Bank MD & CEO Prashant Kumar 6-month extension: Lender

Kumar got his first extension in October 2022 for a three-year period till Oct 25

Prashant Kumar has got a six-month extension from the Reserve Bank of India (RBI) as Yes Bank's managing director (MD) and chief executive officer (CEO), the lender said.

 

The extension will be effective from October 6, 2025, “or till the appointment of new MD and CEO/successor taking charge, whichever is earlier”, it said late Thursday in an exchange notification.

 

Yes Bank did not say how long an extension it had sought for Kumar. He was first appointed the administrator of Yes Bank when it was reconstructed in March 2020 by the RBI and the government with the help of a consortium of banks, including State Bank of India (SBI). He was later appointed as the MD & CEO. Prior to that, Kumar was deputy MD and chief financial officer of SBI.

 

Kumar received his first extension as Yes Bank MD & CEO in October 2022, for a three-year period till October 2025.

 

Reports said earlier that Sumitomo Mitsui Banking Corp. is acquiring a 20 per cent stake in Yes Bank from SBI and other lenders involved in the bank’s reconstruction, valuing the deal at over Rs 13,000 crore. Yes Bank reportedly considered appointing a new MD & CEO and has engaged a headhunting agency to assist in the search amid Sumitomo’s plans. 

 

Yes Bank is the second private-sector lender searching for a new CEO. IndusInd Bank is in the process of appointing a new MD & CEO after Sumant Kathpalia’s resignation.

 

Yes Bank shares on the BSE closed 1.27 per cent down from the previous day’s close at Rs 20.16.

 

Separately, Moody’s Ratings upgraded the bank’s long-term foreign currency and local currency bank deposit ratings to Ba2 from Ba3 as well as its baseline credit assessment (BCA) and adjusted BCA to ba3 from b1. Additionally, the global rating agency has changed the outlook on the bank to “stable” from “positive”.

 

The upgrades are driven by an improvement in the bank's credit profile, including its capital and loan loss reserves that will provide buffers against unseasoned asset risks and improved yet modest profitability and funding.