Mumbai, Aug. 20 -- HDFC Bank has raised $1.75 billion through a twin-tranche offshore bond issue, stepping up its foreign-currency fundraising as Indian lenders race to mobilize funds ahead of the Reserve Bank of India's (RBI) early closure of the foreign currency non-resident bank or FCNR(B) deposits.

India's largest private sector bank, through its GIFT City branch, raised $500 million through three-year senior unsecured notes and $1.25 billion through five-year notes, according to a late Thursday exchange filing.

The three-year bonds carry a coupon of 5.159%, while the five-year notes carry a coupon of 5.401%. Both issuances are scheduled to settle on 26 August.

The fundraising is likely to support HDFC Bank's mobilization of foreig...