Leadership shakeup at Yes Bank: board committee blocks retail head extension, CEO term unclear

Yes Bank’s Nomination and Remuneration Committee (NRC) has decided not to extend the tenure of Rajan Pental, the bank’s Global Head of Retail Banking, CNBC-TV18 has learnt from two people directly aware

of the matter. Pental, who joined Yes Bank in November 2015 and was appointed Executive Director in February 2023 for a three-year term, is likely to exit when his tenure ends in February 2026.

The committee’s decision comes against the backdrop of sustained losses in the retail segment. After small profits in FY22 and FY23, the bank reported retail-segment losses of ₹9,726 crore in FY24 and ₹2,140 crore in FY25. Losses persisted in FY26, with ₹668 crore in Q1 and ₹358 crore in Q2, despite ongoing attempts to scale and optimise the business.

Retail loans accounted for 48% of total advances as of Q2 FY26, down from 52% a year earlier. Retail advances stood at ₹1,20,802 crore as of 30 September 2025, reflecting modest growth of 1.5% quarter-on-quarter and 2.4% year-on-year.

Speaking at the bank’s last earnings call, MD & CEO Prashant Kumar said retail losses had narrowed: “The losses which were ₹668 crores at the end of quarter one have already come down to ₹358 crores… we have already reached breakeven if you exclude excess provisions.” He added that retail was not a core business prior to 2020 and had faced challenges due to COVID, credit-cycle stresses and steep repo-rate swings.

Uncertainty extends to the CEO’s office as well. Kumar’s term—currently extended by six months by the RBI until 5 April 2026—has not been recommended for further extension by the NRC so far, CNBC-TV18 has learnt. With four months left, the board has yet to propose a candidate for RBI approval.

Yes Bank’s largest shareholder, Sumitomo Mitsui Banking Corporation (SMBC), which owns 24.2% and holds two board seats, is expected to play a central role in decisions on retail leadership and the CEO succession plan.

CNBC-TV18 has reached out to Yes Bank for comment. The story will be updated if a response is received.