Vinay Tonse appointed CEO, Yes Bank's new bet to revive growth momentum

Former SBI managing director Vinay Tonse will take over as MD & CEO of Yes Bank as the lender seeks to accelerate growth after stabilising its balance sheet

Vinay Muralidhar Tonse (60), who will take over as managing director and chief executive officer of Yes Bank from Prashant Kumar, has his task cut out to catapult the lender into the next phase of its growth trajectory. The bank has seen subdued asset-side expansion in recent quarters, particularly in retail, as it shifted away from traditional products such as home and car loans towards mid-yielding segments. 

 

The appointment is significant as it comes after Japanese financial major Sumitomo Mitsui Banking Corporation (SMBC) picked up a 25 per cent stake in the bank last year.

 

Tonse, like the present Yes Bank MD and CEO Prashant Kumar, is a former State Bank of India (SBI) banker. He retired from SBI in November 2025 as managing director, heading the bank’s retail operations.

 

“He has all-round experience. Across his career, he has covered almost every major area — corporate banking, markets, international banking and retail — along with leading a key subsidiary of State Bank of India (SBI). He is an experienced professional with a strong track record of performance and a people-oriented leadership style, making him a very good choice overall,” said a senior banker on Tonse’s appointment as Yes Bank MD and CEO.

 

Sources aware of the development said there were three candidates in the reckoning for the MD and CEO position, of which two were from the private sector, but Yes Bank’s board decided to go with Tonse as its lead choice.

 

Tonse joined SBI as a probationary officer in 1988 and spent over 30 years with the country’s largest lender, working across multiple locations in India and overseas. During his tenure, he handled a wide range of assignments spanning corporate credit, treasury, retail and international banking.

 

Kumar assumed charge at Yes Bank in March 2020 during the bank’s reconstruction phase. His term was extended by six months to April 6 this year so that the new shareholder, SMBC, could have a say on future leadership. Kumar is widely credited with steadying the ship following the crisis that led to the bank’s reconstruction with new ownership.

 

Tonse has significant international exposure, having served as chief executive officer of SBI’s Osaka branch in Japan for four years, and earlier worked as an officer at SBI’s Singapore office. In August 2020, he was appointed managing director and chief executive officer of SBI Funds Management. Prior to his appointment as managing director in November 2023, Tonse served as deputy managing director, overseeing corporate group accounts that cater to large corporate clients.

 

“There is only so much talent available, given the way the RBI regulates compensation and other aspects of the banking sector. In that context, Vinay Tonse is a strong choice — he is highly experienced and brings deep operational understanding. In a private bank setup, with greater flexibility, he has the potential to do well, supported by a nuanced understanding of the Indian market,” said an industry insider, adding that it would be unfair to draw direct comparisons between Kumar and Tonse, as leadership outcomes are often person-dependent.

 

“This will be the first real test of Tonse’s ability to lead a bank independently, but he has benefited from working under experienced leadership during his time at SBI. With SMBC likely to take a few years to assume larger ownership, the bank needs steady leadership in the interim — and Tonse fits that requirement,” he said.

 

According to Pratik Shah, partner and national leader – financial services at EY India, Tonse is a seasoned banker who has learnt from some of the best minds at SBI and understands the country at a grassroots level. “Having spent his entire career working within the construct of a PSU bank and still achieving market-leading growth, he now has the opportunity to operate in a relatively unconstrained private-sector setting, giving him the scope to take the bank further in its growth journey,” he said.

 

Yes Bank’s loan growth has been in single digits for the last few quarters. In Q3FY26, the bank reported 5.2 per cent year-on-year growth in advances; in Q2FY26 it grew 6.5 per cent YoY; and in Q1FY26 advances recorded 8.2 per cent YoY growth.

 

The bank has chosen to fix its balance sheet first — focusing on asset quality and profitability rather than chasing scale — which has kept credit growth well below the system average. Retail lending, in particular, has remained subdued as the bank deliberately stepped away from low-yield, high-volume products such as home and car loans and shifted its focus to mid-yield segments. On the corporate side too, growth has been measured, with the bank focusing on mid-market corporates and small and medium enterprises (SMEs).

 

“Within retail and corporate and institutional banking (CIB) segments, we continue to remain selective and are strategically expanding our portfolio in those sub-segments that deliver the most attractive risk-adjusted returns,” Kumar had said during the Q3 earnings call with analysts.

 

The bank’s stock ended 1 per cent higher on Wednesday at ₹21.54.

 

With SMBC coming on board as a strategic investor with around a 25 per cent stake in the bank, it was largely expected that it would look for new management to drive the next phase of growth.

 

Among large shareholders, SMBC currently holds a 24.90 per cent stake in the bank. SBI holds nearly 11 per cent, Life Insurance Corporation of India (LIC) nearly 4 per cent, and Vervanta Holdings holds an 8.5 per cent stake.