Greek EFG denies reports it is eyeing Tekstilbank

"EFG Eurobank categorically denies today's reports ... and states that there is no interest, no discussion underway with Turkey's Tekstilbank or any other bank," the Greek lender said in the statement.

Thomson Financial News on Tuesday, citing sources close to the matter, told that the Eurobank was currently in the early stage of talks with shareholders of Tekstilbank.

The Greek bank was seeing solid long term growth opportunities in the neighboring country, even if there were political and other risks to deal with in the short term, the source added.

Tekstil Bank has 60 branches and a representative office in Berlin and it has plans to grow its network to 100 offices by 2010. It has 335,000 customer and 1,347 employees, it has a market capitalization of 300 million euros and is the fourteenth largest bank in Turkey.

Tekstilbank is controlled by Turkish group GSD Holdings.

EFG Eurobank currently has a presence in Turkey through unit Tekfen Bank which has a branch network numbering 37 offices.