Vinay Tonse, former SBI doctor
“He is a gentle banker who does not behave aggressively. I have seen him work hard and with sincerity and he is very knowledgeable having worked in the credit, treasury and international business segments,” said a former colleague of Tonse.
Career path
Tonse started his career at SBI in 1988 as a probation officer. He worked across regions in India and globally, leading business areas touted as the most critical in the Indian banking landscape such as corporate lending, 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. Prior to SBI MF, Tonse headed SBI’s critical Chennai Circle as Chief General Manager, overseeing 15,000 employees and a network of 1,260 SBI branches and offices across Tamil Nadu and Puducherry.
Tonse also served as CEO of SBI Osaka Branch, Japan between 2009 and 2013, where he held the deputy MD position and was responsible for the corporate accounts group at SBI’s iconic corporate center in Mumbai. At the end of 2023, Tonse was elevated to the position of MD, retail business and operations, looking after ground operations in more than 23,000 branches.
The new YES Bank boss is a graduate from the B.Comm department of St. Joseph College of Commerce, Bangalore, and has a Masters in Commerce from Bangalore University.
Task shutdown
Tonse’s biggest test would be improving the profitability of the retail segment at YES Bank. After an SBI-led consortium bailed out YES Bank by infusing around Rs 10,000 crore in 2020, the Kumar-led lender took a conservative approach in growing YES Bank’s loan book. Management focused primarily on gaining the trust of concerned savers, addressing past asset quality challenges and expanding its secured lending business – which reassured asset quality – but provided lower returns than unsecured, higher-yielding products.
YES The net interest margin (NIM), a key indicator of profitability, stands at 2.6 percent at the end of December and is among the lowest among comparable banks. SBI was the largest investor in YES Bank, but with Japanese lender SMBC acquiring a 24 percent stake in YES, this is no longer the case and it will be Tonse’s prerogative to coordinate and work with the largest investors in the bank, who can gradually become promoters of the lender.
Tonse comes from SBI and is likely to continue with the conservatism his predecessor brought to the table when it comes to lending. To grow NIMs, he may be open to expanding unsecured lending, but only after all the guardrails are put in place. Tonse has suspended his duties for the next three terms. END
Published on February 4, 2026
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