Embassy REIT Eyes 92% Occupancy; RBI Resets FD Rules

Synopsis

Embassy REIT has seen a 17% YoY net operating income growth on back of demand in global capability centre and is considering making a foray into the Hyderabad office market. On its own, the revised interest rate guidelines issued by Reserve Bank of India towards uniformity of pricing in branches go into effect on October 1.

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Embassy REIT: Wagering on the office demand in the GCC

The office real estate investment trust (REIT) segment in India gave a positive signal this week, as Embassy REIT's net operating income (NOI) rose 17 per cent annually, while its revenue increased 17 per cent year-on-year.

In the quarter, the trust signed 17 deals for a total of 1.3 million square feet, of which 81 per cent was for its global capability centres, highlighting the ongoing preference of global companies establishing their own dedicated presence in India for premium office space.

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New leases were negotiated at an 11 per cent re-leasing spread, whereas renewals rent was 9 per cent higher than previous lease of the same rent.

As of June 30, 2026, portfolio occupancy was 93 per cent by value and 90 per cent by area, up from 91 per cent and 88 per cent, respectively, a year earlier; four of five cities had portfolio occupancies of more than 90 per cent.

Mumbai and Bengaluru were the top two markets with full occupancy, but Pune, the portfolio's underperforming market, with a 59 per cent occupancy, appeared to be normalising following previous disruptions caused by geopolitical events.

In the future, that the trust expects to target 92 per cent occupancy for FY27, has a development pipeline of 1.5 million square feet and Hyderabad is a market that the REIT is looking at "keenly," was said at the results call, which was attributed to executive Shetty by Business Standard.

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The trust has announced a Q1 distribution of Rs 6.31 per unit, which is 9 per cent higher than a year ago.

RBI Rewrites the Rules on Deposit Pricing

In a decision that will affect millions of retail savers directly, the Reserve Bank of India has finalized new guidelines for banks' pricing of deposits. The changes are in the form of a Reserve Bank of India (Commercial Banks – Interest Rate on Deposits) Second Amendment Directions dated 1st October, 2026.

The principle of non-discrimination is at the heart of the reform, "The interest rates offered on deposits, including bulk deposits, shall be uniform across all branches and for all customers and there shall be no discrimination in the matter of interest paid on the deposits, between one deposit and another deposit of similar amount, accepted on the same date, at any of its offices," the central bank said.

The rules leave opportunities for large depositors, however. Banks will be allowed to have differential interest rate on their bulk deposits (Rs 3 crore and above) based on differential run-off rate under LCR framework to be extended to non-resident rupee deposits as well.

The banks are now required to post interest rates for bulk deposits on their websites, by 10:00 am on each business day, with a 10-minute grace period in order to provide transparency.

The new guidelines will be effective for commercial banks, small finance banks, regional rural banks, payment banks, local area banks and urban cooperative banks. The Reserve Bank of India has given banks the freedom to tie up the bulk deposit rates with its liquidity profile.

The Bigger Picture

Together, these two moves highlight separate but complementary trends in Indian finance this quarter:

Institutional capital still seeking to ride the office realty wave that Indian demand has generated amid global outsourcing activity and the banking regulator's push for increased transparency and fairness for the typical depositor amid a still high interest rate market.