One of his first strategic moves was relocating the bank’s headquarters from Needumburam to Aluva, Kerala, and renaming it to Federal Bank in 1945, dropping "Travancore" from its name.
Kulangara Paulo Hormis, fondly known as KP Hormis, was a pioneer in the Indian banking sector, especially in South India. Born into a family of farmers in Kerala in 1917, he became a lawyer at the Munsiff Court in Perumbavoor. Around that time, Travancore Federal Bank Ltd was on the verge of bankruptcy. In 1944, he left his job and bought a stake in the struggling bank, thus marking the beginning of a new chapter in his life.
Hormis acquired enough shares to gain control of the bank and the share capital increased from Rs 5,000 to Rs 71,000. One of his first strategic moves was relocating the bank’s headquarters from Needumburam to Aluva, Kerala, and renaming it to Federal Bank in 1945, dropping "Travancore" from its name.
During this time, the concept of "Kuries" (a type of chit-fund) became popular in Kerala. This scheme allowed bidders to participate in the fund with a 50% discount, providing them with an official receipt for the transaction. In 1949, Federal Bank received its banking license, and Hormis introduced the Kuries scheme for farmers, enabling them to access funds through this innovative method.
Federal Bank expanded from one to three branches in Kerala. By 1968, he had acquired five more banks: Chalakudy Bank, Cochin Union Bank, Marthandom Bank, St. George Union Bank, and The Alleppey Bank.
Originally catering to farmers and small customers, Federal Bank transitioned into a scheduled commercial bank by 1970 and opened its first office in Mumbai. The bank continued to grow, reaching 276 branches by 1977, with a share capital of Rs 1 crore. Today, Federal Bank's market capitalisation is Rs 40,000 crore with a presence across the entire country, with over 1,600 branches.
KP Hormis passed away on January 26, 1988 at 70.
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 "KP Hormis Federal Bank")
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