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Have never heard anything about him being based off any actual mythology. Here's what I know but other regulars who've been playing/reading Realms longer than I have probably know more. He was originally a powerful mortal warlord who along with his two companions, Bhaal and Myrkhul(sp?), set out across the planes seeking great challenges, fame, power. Eventually they challenged the god Jergal who at the time was a god of death, murder, and tyranny. Jergal was bored with his existence at this time and agreed to split his responsibilities up amongst the 3 of them. The rolled an arch-lich's skull to see who got to pick which portfolios. Bane chose tyranny. During the Time of Troubles (1E-2E shakeup event in FR), Bane was slain by Torm. His 'god-son' Iyachtu Xvim worked towards taking over his father's portfolio. However, it turned out that Xvim was basically a kind of contigency plan of Bane's and after a series of events orchestrated by Bane's last high priest, Bane burst out of Xvim and reclaimed his portfolio.
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In the indefinite past, Bane was a member of the Dead Three, a triad of mortals sworn to achieve godhood. Bane, Bhaal, and Myrkul forged an unholy pact, agreeing that they would work together to seek ultimate power, or die in the attempt. Over the length and breadth of the Realms they strode, seeking powerful magic and spells and defying death at every turn. No matter what monster they confronted or what spells they braved, the three mortals emerged unscathed at every turn. Eventually the trio destroyed one of the Seven Lost Gods, Borem, of the Lake of Boiling Mud, and they each seized a portion of Borem's divine essence for themselves. The trio then journeyed into the Gray Waste and sought out the Castle of Bone to confront Jergal. The three approached the god Jergal and threatened him for the godly powers. Jergal, all powerful to the point that he had long ago wished to step down the throne, asked: "Who among you shall rule?", and the trio immediately fell to fighting amongst themselves. Jergal proposed that they solve this problem by bowling skulls of his liches. It turned out that Bane bowled the farthest, and was thus able to choose his domain. He said: As winner, I choose to rule for all eternity as the ultimate tyrant. I can induce hatred and strife at my whim, and all will bow down before me while in my kingdom., thus he claimed the portfolios of Tyranny, Hatred, and Strife, ascended as a greater deity
For more check Bane's Wiki.