The bank is selling up to 34 million shares to institutional investors at 1,390 rupees a share to raise as much as $877 million, said the sources, who declined to be named as they were not authorised to speak to the media.

Separately, Axis is also raising up to $152 million by allotting up to 5.9 million shares on a preferential basis at 1,390 rupees a share, said the sources, adding the bank would raise a total of about $1 billion from the two tranches.

Shares in Axis Bank ended 1.9 percent higher on Monday at 1,412.95 rupees, outperforming a flat close in the broader market and 0.7 percent gain in the banking sector index