Yes Bank extends CEO's tenure by 6 months: Move to help SMBC steer strategy

The six-month extension given to Yes Bank chief Prashant Kumar aims to give incoming shareholder, Sumitomo Mitsui Banking Corporation (SMBC), room to decide the lender's leadership and strategy once the ownership changes, said industry insiders.
The private-sector lender last week told exchanges the Reserve Bank of India (RBI) had approved Kumar's extension as managing director (MD) and chief executive officer (CEO) till October 6. However, Yes Bank did not say how long an extension it had sought for Kumar.
Kumar has led the bank since its reconstruction in March 2020. He was first appointed the bank's administrator and later made the MD & CEO. Before that, he was deputy MD and chief financial officer of State Bank of India (SBI).
Kumar received his first extension as Yes Bank MD & CEO in October 2022 for a three-year period. ALSO READ: RBI gives Yes Bank MD & CEO Prashant Kumar 6-month extension: Lender
After SMBC announced that it will buy a 20 per cent stake in the private lender from SBI and others, reports said that Yes Bank's board is considering appointing a new MD & CEO and has engaged a headhunting agency to assist in the search. (SBI and other lenders had chipped in to reconstruct Yes Bank for over Rs 13,000 crore.)
Kumar, over five years, has shifted the bank's focus from 'affluent' to 'mass affluent' customers and transformed its corporate-heavy book into largely retail, including MSME. Retail and SME books together constitute 60 per cent of its total loan book, compared to 36 per cent in March 2020. The bank's asset quality has improved with gross non-performing assets at 1.6 per cent at the end of March 2025, compared to almost 17 per cent at the end of March 2020.
'We are talking about the next five years because we have made the balance sheet strong enough, where the future earnings are not going to be impacted because of any past impact,' Kumar told 'Business Standard' last month.
The RBI is allowing leeway for new shareholders to take their call about the bank's management, according to Abizer Diwanji, founder of NeoStrat Advisors LLP. The expectation seems to be that regulatory approvals will be secured in six months, allowing the new ownership (along with their representatives on the bank's board) to decide the bank's leadership.
'Under Kumar, the bank's retail strategy is yet to play out well. The cost-to-income ratio remains elevated, highlighting the need for more corrective measures on the retail front. Additionally, priority sector lending obligations have put pressure on margins, and key metrics like return on assets (RoA) and return on investment have shown limited improvement. That said, Kumar's conservative approach has helped keep asset quality at a manageable level,' said Diwanji.
The bank aims to have a RoA of 1 per cent by FY27. In FY25, the RoA was at 0.6 per cent. It hopes to reach 1.5 per cent RoA in the next four-five years, Kumar had said previously.
'The bank has performed reasonably well, with shareholders — including SBI and other private sector banks — doubling their investment over the past five years. The six-month extension granted to the current MD & CEO provides flexibility to the new shareholder, SMBC, to decide on the leadership that will drive their strategic vision for the bank going forward,' said an industry expert, who did not wish to be named.
'Therefore, the shorter extension for the incumbent MD & CEO is likely not a reflection of performance, but rather a move to allow the new stakeholder greater flexibility in shaping the bank's future,' said the expert.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

31 minutes ago

• Business Standard

Net direct tax collection dips 1.39% to Rs 4.59 trillion in Apr-Jun

Net direct tax collection so far this fiscal stood at Rs 4.59 trillion, 1.39 per cent lower compared to the mop-up during the corresponding period of last fiscal, as advance tax collections slowed, government data released on Sunday showed. Advance tax collection during April 1-June 19, 2025 grew a meagre 3.87 per cent to Rs 1.56 trillion. In the comparable period in 2024, advance tax collection had recorded an annual growth of 27 per cent. During April 1-June 19, 2025, corporate tax collection witnessed a slowdown at about Rs 1.73 trillion, a decline of over 5 per cent year on year. Non-corporate tax collections, which include mainly personal income tax, however, recorded a slight increase of 0.7 per cent to Rs 2.73 trillion. Securities Transaction Tax (STT) grew 12 per cent to Rs 13,013 crore during the period. Overall, the net direct tax collection kitty stood at about Rs 4.59 trillion during April 1-June 19, 2025, registering a 1.39 per cent dip from Rs 4.65 trillion collected in the corresponding period in 2024. Refund issuances increased by 58 per cent so far this fiscal to Rs 86,385 crore. Gross direct tax collection stood at Rs 5.45 trillion so far this fiscal, logging a growth of 4.86 per cent from the year-ago period. Advance tax collection in corporate tax saw a growth of 5.86 per cent to Rs 1.22 trillion, while non-corporate tax collection dropped 2.68 per cent to Rs 33,928 crore. Overall, advance tax collection grew 3.87 per cent to Rs 1.55 trillion during April 1-June 19, 2025. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

India Today

32 minutes ago

• India Today

Meta launches Oakley smart glasses for athletes: Price, specs and more

Meta has teamed up with Oakley to introduce a new generation of performance AI glasses, aimed at athletes and sports enthusiasts. Dubbed the Oakley Meta HSTN, the latest innovation blends Oakley's bold styling with Meta's advanced technology, promising to redefine how users experience and share their sporting new range launches alongside a global campaign featuring sporting icons, including World Cup champion Kylian Mbapp and NFL star Patrick Meta HSTN glasses The Oakley Meta HSTN glasses bring together striking design and advanced technology, drawing inspiration from Oakley's popular HSTN frame. With their bold, confident styling, they not only make a statement but also offer a host of smart features aimed at enhancing performance and convenience. At the heart of the glasses is an upgraded camera capable of recording ultra-clear 3K video, making it easy for users to capture hands-free footage of their activities from their own point of view. Audio has been thoughtfully integrated too, with open-ear speakers built into the frame, so wearers can enjoy music, podcasts or calls without the need for glasses also feature built-in Meta AI, which provides real-time assistance during activities. Whether it's checking wind conditions on the golf course or posting a video to social media with a simple voice command, the AI is designed to make interactions smooth and intuitive. Durability hasn't been overlooked either — the glasses are rated IPX4 for water resistance, meaning they can handle rain, sweat or splashes during outdoor sports. advertisementAs for battery life, the Oakley Meta HSTN offers up to eight hours of use on a full charge, while a quick 20-minute top-up provides around 50 per cent charge. The included charging case ensures extended usage by delivering up to 48 additional hours of battery on the and pricingThe Limited-Edition Oakley Meta HSTN will be available for preorder from 11 July at $499 USD (around Rs 43,200). A broader range will follow later in the summer, with prices starting at $399 USD (approximately Rs 34,600).Initially, the glasses will be sold in the US, Canada, the UK, Ireland, France, Italy, Spain, Austria, Belgium, Germany, Sweden, Norway, Finland, Denmark and Australia. Meta plans to extend availability to Mexico, India and the UAE by the end of the marks a significant step in Meta's bid to integrate AI technology more deeply into everyday accessories, aiming to offer both functionality and style to a growing community of users.

Economic Times

32 minutes ago

• Economic Times

Decoding Volatility: What VIX and IV are telling us in 2025

The muted VIX suggests confidence in the market's overall sentiment. Synopsis In 2025, Indian markets have surged to record highs despite global headwinds, with volatility indicators like India VIX and Implied Volatility (IV) painting a picture of surprising calm. The VIX has remained range-bound between 12 and 16, signalling investor confidence, while ATM IVs for Nifty options suggest low volatility with occasional spikes around key events. India's benchmark indices, Nifty and Sensex, began 2025 on a muted note but later rebounded sharply, with Nifty marking a fresh all-time high above 25,200 in June. This year, Indian stock markets have been facing sharp peaks and troughs, with average At-The-Money (ATM) Implied Volatility (IV) for Nifty 50 options ranging between 13.5% and 15.5%. Global economic uncertainties, US elections, and Tariff changes have shaped investor sentiments and boosted sector rotation. ADVERTISEMENT The India VIX is a number that analyses Nifty options and shows how much volatility or movement traders are expecting in the market over the next 30 days. It's often called the "fear index" because it usually goes up when there's uncertainty or fear in the market. So it has an inverse relation with markets. But in 2025, the VIX has stayed quite calm and steady, mostly moving between 12 and 16 — suggesting investors are not nervous, and there's no sign of panic in the market. This aligned with the higher levels in major indices, sectoral outperformance in IT, Auto, and Energy, and FMCG and Metals. The muted VIX suggests confidence in the market's overall sentiment, despite minor dips due to economic & geopolitical stress, quarterly earnings volatility and monsoon concerns—all of which tend to influence the sentiments of retail India VIX to ATM IVs, VIX is a broader concept while ATM IVs are specific to index options, like Nifty 50, Sensex and Bank Nifty Options. In 2025, ATM (At The Money) IVs for Nifty options have averaged between 13.5% and 15.5%, reflecting a low-volatility range. However, sharp IV spikes have been observed ahead of major events such as RBI policy meetings, Union Budget announcements, and during quarter result announcements. ADVERTISEMENT A closer look at the derivatives front: Put-Call Ratio (PCR) has traded near neutral to slightly bullish territory (0.85-1.10), signalling balanced sentiment with an upward bias, where put options have been trading more than or equal to calls, with rising prices suggesting upward bias. Open Interest (OI) concentration on higher strikes (e.g., 25,500–26,000 on Nifty) monthly expiry suggests participants are pricing in range-bound to moderately bullish scenarios, while on the downside, 24,500 and 24,000 strikes have the highest Put OI build up for month of June. Meanwhile, falling IV with rising OI on call sides has often preceded short-covering rallies. ADVERTISEMENT For investors, the low volatility implies stable accumulation opportunities, especially in sectors showing relative strength such as Healthcare (Pharma & Hospital), Cements, Real Estate, Agri inputs, and Power proxies. However, it also warrants caution. So when investing, one should also use a protective put and covered call strategy to safeguard from traders, 2025 has so far been the year of non-directional strategies — think Iron Condors, Calendar Spreads, and Straddles during events. With VIX low, the cost of buying options is low, making event-based long IV trades more attractive when executed timely. ADVERTISEMENT While the markets appear calm, it's important not to get lulled into complacency. The Indian equity market in 2025 has been shaped by a mix of earnings surprises, data around global uncertainties, and geopolitical developments. VIX and IV are more than just technical metrics — they reflect market psychology and can offer early warnings of turning we head into the second half of the year, keeping a close eye on volatility signals will help you navigate uncertainty with greater confidence— and avoid getting caught off-guard by sudden moves. ADVERTISEMENT (The author Dr Ravi Singh is Senior Vice President - Retail Research, Religare Broking. Views are own) (You can now subscribe to our ETMarkets WhatsApp channel) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY