UPDATE 1-Lula says wants Banco do Brasil to keep top rank

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BRASILIA Nov 18 (Reuters) - Brazil's President Luiz Inacio Lula da Silva said he wants state-run Banco do Brasil (BBAS3.SA) to continue to grow and hold on to its top ranking among banks in Latin America's largest economy.

"We want Banco do Brasil to be far bigger than any other bank in the country," Lula said when asked about its proposed takeover of Banco Nossa Caixa BNCA3.SA.

Lula was scheduled to meet Finance Minister Guido Mantega and Central Bank chief Henrique Meirelles on Tuesday afternoon to discuss the country's economic situation and also the takeover of Nossa Caixa, which is controlled by the Sao Paulo state government but were unlikely to reach a decision, Lula said.

"We are going to evaluate," Lula said, in reference to the acquisition.

Banco do Brasil, the Sao Paulo government and Mantega himself were interested in the deal, Lula said.

Brazil's second-largest private sector bank, Itau ITAU4.SA, agreed to buy smaller rival Unibanco UBBR11.SA earlier this month, creating a Latin American financial behemoth with total assets far surpassing Banco do Brasil.

Banco do Brasil's Chief Executive Antonio Francisco de Lima Neto said last week the bank was eager to grow through acquisitions, but would be selective in choosing its targets. The bank has been in talks to buy Nossa Caixa since late May.

Banco do Brasil shares were down 1.4 percent to 13.9 reais in late afternoon trade. (Reporting by Raymond Colitt, Writing by Elzio Barreto, Editing by Leslie Gevirtz)