"There are various options being considered, including seeking a higher dividend from cash-rich central public sector enterprises (CPSEs) and dilution of stake in Axis Bank," sources said.

However, sources said no final decision has been taken so far on any of the options yet.

At the current market price, the government could raise about Rs 11,240 crore by selling 27.48 crore shares.

The Axis Bank stock closed at Rs 409.35, down 4.98 percent.

SUUTI currently holds 11.7 percent stake in Axis Bank after selling off 9 percent stake in the lender in March 2014, which helped mobilise Rs 5,500 crore.

The government expects revenue collection to fall short of the budgetary target by 5-7 percent, mainly because of subdued growth in direct taxes.

Besides, there are fears that the government may not meet its disinvestment target as the Finance Ministry is staring at a shortfall of Rs 50,000 crore.

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