RBI Gives Shorter Tenure Extension For Yes Bank CEO Prashant Kumar
Yes Bank is in the midst of bringing in a new investor, Sumitomo Mitsui Banking Corp., which is buying a 20% stake in the lender.
The Reserve Bank of India has given a six-month tenure extension for Prashant Kumar as chief executive officer and managing director of Yes Bank.
The extension is effective from Oct. 6, 2025, or till a new MD and CEO takes charge at the bank, the regulator said in a letter to the bank on June 12. The bank disclosed the extension in an exchange notification on Thursday.
Yes Bank is in the midst of bringing in a new investor, Sumitomo Mitsui Banking Corp., which is buying a 20% stake in the lender. The Japanese financial conglomerate is buying this stake through a secondary transaction where State Bank of India and other lenders are selling their stake.
The bank has not revealed whether the board sought a longer extension for Kumar. In an interview with NDTV Profit, Kumar dodged a question about his tenure extension, giving no clarity on his future at the bank.
SMBC’s entry into Yes Bank is still awaiting regulatory clearance. NDTV Profit had previously reported that the 20% stake buy is part of a broader transaction where the Japanese investor would take charge at the lender.
Kumar was first appointed as an RBI administrator at Yes Bank in March 2020, when the lender was undergoing a reconstitution. Following severe financial turbulence, the regulator stripped the board of its powers and appointed Kumar to run affairs. Subsequently, he was appointed as MD & CEO, and a reconstituted board was also placed. Later, Kumar continued at the lender, while a fresh board came into the picture.
