No rate rollback for Bank of Baroda

 The Finance Ministry had earlier asked the bank to keep the rate hike on hold and get it endorsed by its board. Banking Secretary Vinod Rai is the government nominee on the BoB board. Mr Rai is believed to have supported the rate hike.

Incidentally, Rai shot off the first letter on July 28 asking PSU banks to ensure flow of credit into the "productive sector." This was followed up by another letter from the joint secretary of banking, Amitabh Verma asking banks to keep "rate hikes in abeyance". Most banks stocks were up in today's trade.

The bank's stock ended the day at Rs 231.10 (up Rs 3.90, 1.72%).