Srei Infrastructure Finance Ltd. is all set to buy the domestic banking unit of nationalized Austrian lender Hypo Alpe Adria for 65.5 million Euros, the newspaper Die Presse said.

The paper said that negotiations on the sale had wrapped up and the regulators do not foresee any problem with the planned takeover. A spokesman for Hypo Alpe Adria commented that relevant bodies of the bank have not

taken any decision yet. The bank has, however, said that a sale is due by mid-2013.

Reuters asked Hemant Kanoria, chairman and managing director of Srei Infrastructure, about reports on Hypo unit on May 7. He said that he is not interest in Austria and any other European Union Territory.

The European Commission has created immense pressure on Hypo Alpe Adria to sell its operating unit by the end of this year or else return more than two billion Euros of state aid. Hypo Adria had to be taken over by Austria in 2009.

The bank and the government hope that an initial sale success can be helpful to persuade Brussels to give it more time to complete sales of other units in Italy and the Balkans.

According to an article by Presse, _ 65.5m have been offered by the Indian Srei Group to the crisis-struck Austrian Hypo Alpe Adria affiliate.