Public sector lender, Punjab & Sind Bank has announced a dip in interest rates of fixed deposits amounting to Rs 1 crore and more.

The interest rates have been slashed by upto 125 basis points by the bank.

"Keeping in view eased liquidity and sluggish credit oftake Punjab & Sind Bank has reduced the rate of interest on domestic term domestic of above Rs 1 crore to 5 crore ranging from 25 basis points to 125 basis points with effect from April 18, 2011," the bank said.

On the other hand, the lender has hiked interest rates on deposits of more than Rs 1 crore having tenor of 31-45 days to 7.25%.

For deposits less than Rs 1 crore, the interest rates have experienced no change, the bank reported.