When the rod is moved upward with velocity $$v$$ each electron $$q$$ inside the rod experiences a Lorentz magnetic force
$$ {f}_{m}=Bqv$$ (given that magnetic field and velocity are perpendicular to each other)
it acts from point b to point a (by Fieming's left hand rule) ,due to this magnetic force electrons accumulate at the end a so end a becomes negative and end b positive.Hence an electric field is set up between the points b and a from b to a .The electric field so produced exerts electric force on electrons from a to b and opposes the magnetic Lorentz force. But due to accumulation of electrons at point a electric field increases hence electric force, after some time a stage comes when both forces become equal .If E is electric field at this stage then electric force on a electron
$${f}_{e}=qE$$
in equilibrium both forces will be equal and opposite
$${f}_{e}= $$$$ {f}_{m}$$
$$qE$$ =$$Bqv$$
$$E=Bv$$
if V be the potential difference and L is the length of rod , then
$$E=V/L$$
or we can say from last two equations ,
$$V/L=vB$$
$$V=vBL$$
As point is positive so it will be at higher potential.