MC EXCLUSIVE Yes Bank board opts against retail head’s continuance, no clarity on CEO’s term

Yes Bank

A nomination and remuneration committee (NRC) meeting held a few weeks back at Yes Bank is said to have turned down a proposal granting an extended tenure for Rajan Pental, the bank’s executive director, heading the retail book. According to people privy to the development, with Sumitomo Mitsui Banking Corporation (SMBC), the majority shareholder of Yes Bank, keen to boost the retail business of the bank, members of the NRC have unanimously decided against granting an extension to Pental.

Appointed for three years in February 2023, he is a long serving employee of Yes Bank, associated with it for over a decade.

“Despite multiple efforts, there hasn’t been much progress on the retail business and hence the board is said to have decided to bring in fresh talent including at leadership positions for the retail business,” said a person aware of the matter.

While Pental’s reappointment as executive director is said to have been turned down by the NRC, it is not clear yet who would succeed him. The immediate next in line is Sumit Bali, who joined the bank in August last year after stepping down from Axis Bank where he led the retail lending business. For now, it is not clear whether he would succeed Pental as an executive director.

The people cited say Prashant Kumar, Yes Bank’s MD & CEO, is unlikely to get a longer tenure in office. “If he were to offer himself for reappointment, the board should have recommended his name to the RBI by now,” said a banker who didn’t want to be named.

To be sure, it is a common practice for banks to approve reappointment of MD & CEO at least six months before the conclusion of the current tenure and submit the proposal to RBI. In case the board suggests a new CEO, a list of two or three names (combination of internal candidates and outsiders) is sent to the RBI four months prior to the conclusion of the current CEO’s tenure.

SMBC has two nominees in the board, and the people cited say the final decision on CEO appointment may ultimately vest with the new shareholder. On October 6, 2025, Prashant Kumar was given a six-month extension as MD & CEO of Yes Bank. With the tenure set to end on April 5, 2026, doubts have surfaced whether he would be given another term in office.

“No comments,” said a spokesperson of Yes Bank when asked for clarification on continuance of Rajan Pental and Prashant Kumar in their respective roles. Kumar has been MD &CEO since March 2020.

In May this year, SMBC agreed to acquire 20 percent stake from State Bank of India and a clutch of banks and subsequently acquired 4 percent stake held by PE Major Carlyle. Presently holding 24 percent stake in Yes Bank, SMBC is the single largest shareholder of the bank, with two board representation.