IDBI Bank, one the leading public sector banks, has slashed its base rate by 25 bps to 10% with effect from May 11, 2015.

"The reduction in interest rate is expected to positively impact loan growth; both in the retail consumer segment, as also revitalize fixed capital formation through higher corporate sector lending, thereby supporting the growth impulses in the economy," the bank said.

The BPLR of the Bank has also been reduced by 25 bps to 14.50% w.e.f. May 11, 2015 in line with the reduction in Base Rate.

The bank has also decided to reduce the retail term deposit rates in select buckets by 10-25 bps with effect from May 11, 2015.

Shares of the bank declined Rs 0.45, or 0.64%, to trade at Rs 70.05. The total volume of shares traded was 4,523 at the BSE (9.16 a.m., Thursday).