K M Abraham convened a news conference at KIIFB office on Wednesday evening soon after news broke about reported probe by ED against KIIFB. He said that there was no ground for probe into KIIFB’s investment in Yes Bank.
“KIIFB invests funds based on an investment management policy. An investment management committee constituted by KIIFB has recommended high rating as criterion for investment in private sector banks. KIIFB invested an amount of Rs 832.21 crore in Yes Bank in seven installments. This was based on high rating of Yes Bank. In 2018, when the rating of the bank dropped, all financial transactions were halted. We waited for one year for the deposit to mature and the amount was withdrawn promptly. KIIFB did not lose any money in that deal. I don’t know whether such a transparent deal calls for any kind of probe. In fact KIIFB’s prompt action with vigil and alacrity testified its professional excellence,” said K M Abraham.
He said that surplus fund is converted to fixed deposits and tenders are called from private sector banks for the same. The bank which quotes the highest interest rate wins the bid, he said. “We only gained profit out of it, our exit from the investment was timely,” he said.
As regarding allegations of involvement of T S Vijayan in the deal, former chairman of IRDAI, K M Abraham said that Vijayan was never a part of the KIIFB board when the fund was invested and withdrawn.
“Following the demise of Babu Paul, there was a vacancy. We wanted to have T S Vijayan on board, however there was a cooling period of two years after his retirement from IRDAI. Although we sought a relaxation on this period from the centre, it did not materialise. Vijayan was nominated as independent board member in February 2020 and by that time, the deal with Yes bank was over. He had no association with KIIFB when fund was invested and withdrawn,” said K M Abraham.