Federal Bank, a private sector lender, reduced base rate by 25 basis points to 9.95% from prevailing rate of 10.20%. The revised interest rate will be effective from Jun. 18, 2015.

Last month, the bank announced the board of directors approved the issue of bonus shares to the shareholders of the bank, subject to the approval of the shareholders at the annual general meeting (AGM).

Shares of the bank declined Rs 1.55, or 1.15%, to trade at Rs 133.70. The total volume of shares traded was 10,822 at the BSE (10.35 a.m., Monday).