Mumbai, Feb. 5 -- When Vinay M. Tonse takes over the reins of Yes Bank Ltd, the private lender would be significantly different in character and strength from where it was about six years ago.

The comparison with March 2020 is inevitable because the bank, founded by now disgraced banker Rana Kapoor, was on the brink of collapse. The Reserve Bank of India (RBI) stitched together a rescue involving the State Bank of India (SBI), ICICI Bank Ltd, Kotak Mahindra Bank Ltd, among others. These lenders infused capital after the regulator superseded the board.

Late on Tuesday evening, Yes Bank told the exchanges that RBI has approved Tonse's name as the next chief executive. Shares of the bank rose on Wednesday, following the news, ending the da...