MUMBAI - India's HDFC Bank plans to raise at least 10 billion rupees ($122.48 million) through issuance of Basel III-compliant Tier II bonds maturing in 10 years, three merchant bankers said on Tuesday.

The private lender has invited coupon and commitment bids from bankers and investors for the issue between 1030 IST and 1130 IST on Thursday, they said.

The bonds are rated AAA by CRISIL and the issue will close for subscription later this week.

The issue has a greenshoe option to retain an additional 140 billion rupees.

In September, the bank had raised 30 billion rupees selling Basel III-compliant additional Tier I perpetual bonds at an annual coupon of 7.84% coupon.

($1 = 81.6460 Indian rupees)

(Reporting by Dharamraj Dhutia and Bhakti Tambe; Editing by Sherry Jacob-Phillips)