By Margit Feher

BUDAPEST--OTP Bank Nyrt. (OTP.BU), Hungary's largest bank both by market share and shareholders' equity denied local press reports Sunday that poor health and plans to retire were the reasons behind its Chairman and Chief Executive Sandor Csanyi's decision to sell a large amount of OTP shares last week.

"OTP Bank categorically denies reports regarding Mr. Csanyi's [weak] state of health and plans to retire," the bank said in an emailed statement.

Hungarian national daily Magyar Nemzet said in its online edition Sunday, without naming its sources, that Mr. Csanyi, the richest Hungarian, reduced his stake in OTP last week in preparation for retirement after heart surgery he reportedly underwent in February.

Mr. Csanyi sold 342,818 OTP registered shares July 18 at an average price of HUF4,668 a share, reducing his direct holding of OTP shares to 10,000, the company said Friday. On July 18, Mr. Csanyi also sold 1,350,000 OTP shares he held indirectly in OTP through his firm Bonitas 2002 Zrt., at an average price of HUF4,617 a share, leaving Bonitas with a 1,150,000 OTP shares.

OTP shares fell sharply on Friday due to Mr. Csanyi's stock sale announcement. The shares closed 9.1% lower at 4,200 forints ($18.65), having been suspended temporarily for exceeding volatility limits.

Mr. Csanyi will use the proceeds of the share sales to finance his domestic ventures that are mostly in the farm and food industries, OTP Bank also said in a statement.

Write to Margit Feher at margit.feher@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires