YES Bank shares: RBI approved appointment of new MD &CEO; stock reacts

Shares of YES Bank Ltd opened on a positive note on Wednesday after the Reserve Bank of India (RBI) approved the appointment of Vinay Muralidhar Tonse as its new managing director (MD) and chief executive officer (CEO) of the Mumbai-based private lender.

Shares of YES Bank rose more than a per cent to Rs 21.55 on Wednesday, with its total market capitalization nearing Rs 68,000 crore mark. The stock had settled at Rs 21.32 on Tuesday. YES Bank shares have remained flat in 2026 so far, while the stock has gained nearly 15 per cent in the last six months.

Tonse shall be appointed for a period of three years from his date of appointment. However, his date of appointment has not been announced so far. His appointment shall be subject to the approval of the shareholders of YES Bank. The lender informed about the same on Tuesday, February 3.

Tonse has previously served as managing director (retail business and operations) at State Bank of India till November 30, 2025. YES Bank's current MD and CEO, Prashant Kumar, is currently in the midst of his extended term, said the lender in the filing. Kumar's six month extension shall end in April 2026.

YES Bank reported a 55.42 per cent year-on-year (YoY) jump in the net profit at Rs 951.62 crore, while its net interest income (NIIs) rose 10 per cent YOY to Rs 2,223 crore for the December 2025 quarter. YES Bank's net interest margins (NIMs) improved by 10 basis points (bps) to stand at 2.6 per cent for the quarter.

YES Bank's asset quality for Q3FY26 remained largely unchanged, with gross non-performing assets (NPAs) edging down to 1.5 per cent, while net NPAs remained largely flat at 0.3 per cent on a sequential basis. The lender's total deposits grew 5.5 per cent YoY to Rs 2.92 lakh crore as of December 31, 2025.

ICICI Securities maintained its 'hold' rating on the stock with a revised target price of Rs 24 from Rs 22 earlier,  alongside an unchanged target multiple of 1.2 times. Downside risk for the stock is a sharp rise in delinquencies, it said adding that upside risk is strong recoveries in legacy NPA and SR portfolio, it said.

Ventura Securities has initiated with a 'buy' rating on YES Bank, with a price target of Rs 32, which implies 50 per cent upside from the previous close over the next 24 months. The brokerage valued the stock at 1.7 times FY28E price to adjusted book value, said the brokerage firm.