Yadav, leading the side in the absence of experienced Zaheer Khan and Rohit Sharma, had a good time with the bat as he has scored 485 runs at an average of 53.88 but Mumbai are placed sixth out of nine teams in Group A with 11 points from six games.
According to Cricinfo, Yadav's resignation comes after team's heavy defeat by an innings and 44 runs against Tamil Nadu in Chennai within three days.
Mumbai have have managed to win only one match this season, against Uttar Pradesh. They also lost to promoted side Jammu & Kashmir at home.