Yes Bank CEO Prashant Kumar's Tenure Extended by RBI for Six Months
Person in News
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The Reserve Bank of India (RBI) has approved a six-month extension to Prashant Kumar's tenure as the Managing Director (MD) and Chief Executive Officer(CEO) of Yes Bank. Prashant Kumar's three-year tenure will end in October 2025.
The extended six months of Prashant Kumar's tenure will start from 6th October 2025.
Prashant Kumar has been given the extension so that Yes Bank can appoint a new MD and CEO.
Prashant Kumar's tenure will end the day a newly appointed MD and CEO of the Yes Bank assumes office.
Under section 35 B of the Banking Regulation Act 1949, Indian private banks need permission from the RBI to appoint a Chairman, Managing Director, or Chief Executive Officer.
Prashant Kumar and the Yes Bank
Prashant Kumar took over the management of Yes Bank in 2020, when it was facing a severe financial crisis.
Yes Bank faced a severe financial and reputational risk due to the indiscriminate lending practices adopted by its management under the leadership of its founder, Rana Kapoor.
The RBI stepped in and announced a series of measures to save Yes Bank.
A consortium of Indian banks—SBI, HDFC Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, ICICI Bank, IDFC First Bank, and Axis Bank—invested in Yes Bank and provided liquidity support.
RBI initially appointed Prashant Kumar, former Deputy Managing Director and Chief Financial Officer of State Bank of India(SBI), as the administrator of Yes Bank and later made him the bank's MD and CEO for two years.
His tenure was extended by three years in 2022, and his term was set to expire in October 2025.
Sumitomo Mitsui Banking Corp buys 20 % stake in Yes Bank
Japan’s Sumitomo Mitsui Banking Corp has bought a 20 % stake in Yes Bank. It has bought the Yes Bank’s share from the eight Indian bank that invested in Yes Bank in 2020.
Sumitomo Mitsui Banking Corp bought 13.19 % shares of Yes Bank from SBI for Rs 8,889 crore.
Sumitomo Mitsui Banking Corp bought 6.81 % of Yes Bank's shares collectively from HDFC Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, ICICI Bank, IDFC First Bank, and Axis Bank for Rs 4,594 crore.
Sumitomo Mitsui Banking Corp has approached the RBI to buy an additional 31 % share in Yes Bank, bringing its total holding in Yes Bank to 51%.
About Yes Bank
Started Banking Operation in 2004.
It is registered as an Indian private sector bank with the RBI.
It is a private sector bank.
SBI is the largest single shareholder with a 35.81 % stake in the bank.
Headquarters: Mumbai
Managing Director and CEO: Prashant Kumar
Tagline: Life Ko Banoa Rich
Also Read: RBI fines Deutsche Bank India &Yes Bank for violating its guideline
