Punjab & Sind Bank said the bank has reduced its base rate by 25 bps from existing 10.25% p.a. to 10% p.a. The bank has also reduced benchmark prime lending rate (BPLR) by 25 bps from existing 15.25% p.a. to 15.00% p.a. The revised interest rates will be effective from Jun. 3, 2015. 

The RBI Governor Raghuram Rajan asked the banks to pass through the sequence of rate cuts into lending rates. With today's 25 basis points cut, the RBI slashed interest rates by 75 basis points this year.

The RBI on Tuesday reduced repo and reverse repo rate by 25 basis points to 7.25% and 6.25% respectively. On the other hand, the central bank kept cash reserve ratio (CRR) and statutory liquidity ratio (SLR) unchanged at 4% and 21.5% respectively. 

Shares of the company declined Rs 1.3, or 2.78%, to settle at Rs 45.45. The total volume of shares traded was 24,034 at the BSE (Tuesday).