United Bank of India said it would cut its base rate by 25 basis points to 10 percent from February 1, after the Reserve Bank of India itself cut rates in a surprise inter-meeting move.

Shares in United Bank extended gains to 4.2 percent after the announcement. 

Encouraged by softening inflation, Reserve Bank of India on Thursday decided to cut the benchmark interest rate by 0.25 per cent to 7.75 per cent with a view to boost growth.