State-owned, Punjab National Bank has cut the interest rate on fixed deposits by 0.25 per cent on select maturities, with effect from June 8. The cut by PNB comes a day after the Reserve Bank reduced its key policy rate. Following the RBI's move, several banks have cut their interest rates. State Bank of India yesterday said it will reduce its base rate, or minimum lending rate, to 9.7 per cent, from 9.85 per cent, effective June 8. Allahabad Bank has cut its base rate by 0.3 percent, while Dena Bank, and Punjab & Sind Bank have reduced their base rates by 0.25 per cent, each.