YES Bank appoints Vinay Tonse as CEO and MD for three-year term

MUMBAI: YES Bank has appointed Vinay Muralidhar Tonse as managing director and chief executive officer for a period of three years, a month after receiving approval from the Reserve Bank of India, the private sector lender said on Thursday.

Tonse joined the bank as managing director and chief executive officer and will take over from incumbent Prashant Kumar from April 6.

Kumar, who has led the bank since its restructuring in 2020, will step down after three terms and following the acquisition of a 24.2% stake in the bank by Japan’s Sumitomo Mitsui Banking Corp.. (SMBC)

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In January, the central bank allowed SMBC to operate a wholly owned arm in India, four months after the Japanese financial services giant bought the stake. SMBC currently operates in branch mode in India from offices in New Delhi, Mumbai, Chennai and Bengaluru.

Nandita Gurjar, independent director and chairperson of YES Bank’s nomination and remuneration committee (NRC) and customer service committee, said the committee conducted a comprehensive search and evaluation process as part of the board’s structured succession planning exercises.

“The committee unanimously recommended the appointment of Mr. Tonse, recognizing his exemplary leadership performance with strong governance and ability to drive the organization’s next phase of growth and transformation,” the statement said.

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Tonse has over 35 years of experience in treasury, retail banking, corporate banking, international operations and asset management. He most recently served as managing director at State Bank of India (SBI), the country’s largest lender, where he managed retail operations and oversaw a book of approx. ₹16 trillion, more than six times the entire loan book of YES Bank and strengthens SBI’s customer franchise and balance sheet.

He previously worked in Singapore for two years and headed SBI’s overseas operations in Osaka, Japan, for four years. He also served as managing director and chief executive officer of SBI Mutual Fund between August 2020 and December 2022.

In the statement, Tonse said the bank remains “deeply committed” to creating long-term value for its stakeholders. He said the focus will be on growing the bank’s retail and corporate banking franchises, expanding its branch network and strengthening strong governance, risk management and customer-focused growth.

YES Bank reports 5.5% annual increase in deposits ₹2.9 trillion in the third quarter of the financial year, lagging behind rivals such as IDFC First Bank Ltd and Federal Bank Ltd, which recorded growth of 24% and 11.8% respectively. The lender also trails peers on margins with a net interest margin (NIM) of 2.6%, compared to 5.7% at IDFC First Bank and 3.18% at Federal Bank.

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Rajeev Kannan, non-executive director of YES Bank and senior executive at SMBC, said Tonse’s experience in Japan and Singapore, combined with his understanding of India’s financial ecosystem, puts him in a good position to lead the bank.

“As the largest shareholder, SMBC looks forward to working closely with Vinay and the board to support YES Bank’s journey to become a top private sector bank based on strong governance, sustainable growth and customer focus,” he said.

Shares of YES Bank fell nearly 1 percent at the close. ₹19.34 on NSE.