* State budgeted 250 mln eur for KA Finanz's Basel III need
* Actual capital requirement expected to be far lower-CEO
* Sale of nationalised Kommunalkredit up against deadline (Adds quotes and background)
VIENNA, April 23 (Reuters) - State-owned Austrian "bad bank" KA Finanz does not expect to need more state aid beyond the 250 million euros ($325 million) budgeted this year to help it meet new Basel III capital rules, and may not even need that much, its CEO said.
"We plan no additional capital need that is not already defined," Chief Executive Alois Steinbichler said on Tuesday.
"From today's perspective, the capital requirement for Basel III will be clearly below this (250 million) level," he said, adding that details would be set later this year.
Steinbichler told reporters KA Finanz's requirements depended on the market environment and whether the bank that was split off from nationalised lender Kommunalkredit had to take any losses on risky assets it is winding down.
Its total portfolio stood at 13.6 billion euros at the end of the first quarter, less than half of the assets it first inherited. It put its exposure to the public sector in countries getting EU financial support at 2.1 billion euros, or 15.6 percent of the total as of the end of March.
Steinbichler gave no details on attempts to reprivatise public-sector finance specialist Kommunalkredit, which he also heads, a deal that is supposed to close by mid-2013 under terms of a European Commission-approved bailout.
He would not say whether it might still be possible to close a deal in the less than three months remaining, noting Austrian officials and the Commission were still discussing the case.
The government has earmarked revenue of 250 million euros this year from reprivatising Kommunalkredit, whose book value Steinbichler put at around 200 million euros. But purchase offers so far reflect weak market conditions and banks' scramble to shore up balance sheets, he added without going into details.
Austria had to take over Kommunalkredit in 2008 as the financial crisis erupted. Hits on Greek debt tipped it to a 2011 loss of nearly 149 million euros. It swung to a 2012 profit of 18 million euros under IFRS accounting standards and expects to remain profitable this year, Steinbichler said.
Bad bank KA Finanz narrowed its 2012 loss to 70 million euros under Austrian accounting rules.
($1 = 0.7674 euros) (Editing by Sophie Walker)