Vinay Tonse, former SBI MD
A career State Bank of India (SBI) banker Vinay Tonse is all set to become the new MD, CEO of YES Bank. Tonse superannuated in November last year from his post as MD of the country’s largest bank, while YES Bank chief Prashant Kumar—who was ex SBI CFO himself–is demitting office in April. Apart from his proven banking experience, timing worked perfectly for Tonse’s appointment, who, according to his colleagues is among the hardest-working professional in the industry.
“He is a mild-mannered banker, not aggressive in his behaviour. I have seen him working hard, with sincerity and he is very knowledgable having worked across credit, treasury and international business segments,” said an ex-colleague of Tonse.
Career trajectory
Tonse started his career with SBI in 1988 as a Probationary Officer. Working across different regions in India and globally, he managed business areas touted as most critical in India’s banking landscape, such as corporate credit, international banking, treasury operations, equity portfolio management, retail banking and agriculture and rural banking.
He led SBI Mutual Funds as MD, CEO between 2020-2022, the largest Asset Management Company in India. Before SBI MF, Tonse was heading the critical Chennai Circle of SBI as Chief General Manager, managing 15,000 employees and a network of 1,260 branches and offices of SBI situated in Tamil Nadu and Puducherry.
Tonse also served as CEO, SBI Osaka Branch, Japan between 2009 to 2013, handled deputy MD position in-charge of corporate accounts group at SBI’s iconic corporate centre in Mumbai. In late 2023, Tonse was elevated to the position of MD, retail business and operations, handling on-ground operations across over 23,000 branches.
The incoming YES Bank boss is a B.Comm graduate from St. Joseph College of Commerce, Bangalore, and completed Master’s in Commerce from Bangalore University.
Task cut-out
Tonse’s biggest test would be to improve the retail segment profitability at YES Bank. After a SBI-led consortium rescued YES Bank by infusing about Rs 10,000 crore in 2020, the lender under Kumar’s leadership took a conservative approach in growing YES Bank’s loan book. The management focused on first gaining confidence of worried depositors, addressing legacy asset quality challenges, and growing secured loan business–which provided comfort to asset quality–but makes lesser returns than unsecured higher yielding products.
YES Bank’s net interest margin (NIM), a key indicator of profitability, standing at 2.6 per cent as on December end, is among the lowest among its peer set. SBI was the largest investor in YES Bank, but with Japanese lender SMBC picking up 24 per cent stake in YES, it is no longer the case and it will be the prerogative of Tonse to coordinate and work with the largest investors in the bank, who may gradually become promoters of the lender.
Being from SBI, Tonse is likely to continue with the conservatism that his predecessor brought to the table when it comes to lending. In order to grow NIMs, he may be open to expanding the unsecured lending, but only after having all the guardrails in place. Tonse has his tasks cut-out over the next three term.ENDS
Published on February 4, 2026
