Banks push FTSE 100 higher as Greek debt deal done

* FTSE rises as euro zone leaders agree Greece deal

* IAG gains after UBS upgrades stock to "buy"

* Alent jumps on a bid from Platform Specialty (Adds detail, comment, updates prices)

By Liisa Tuhkanen

LONDON, July 13 (Reuters) - Britain's top equity index hit atwo-week high on Monday, with banks among the best performers,after euro zone leaders agreed on a road map to a potentialthird bailout for near-bankrupt Greece.

The blue-chip FTSE 100 index was up 0.8 percent at6,729.99 points by 1411 GMT, with advances in banks - highlygeared to market declines - adding the most points to the index.

"I was 'long' on the market last week, betting that a Greekdeal would be reached, and the agreement on Greece has had anatural, positive kick-on effect for the banks," Central Marketstrading analyst Joe Neighbour said.

Shawbrook and HSBC were the top riserswithin the sector, gaining between 3.7 and 2.1 percentrespectively.

News of a deal with creditors was met with a measure ofrelief mixed with much anger in Greece, after it became clearthe country will have to swallow more austerity in what some seeas Berlin's attempts to humiliate Athens as a punishment for itsresistance to another round of cuts.

"It's generally seen by the markets at the moment as a donedeal, but clearly there will be some sort of politicalwranglings about this both domestically for Tsipras and hisparty and within the euro zone region as well," said LondonCapital Group analyst Brenda Kelly.

In individual stocks, British Airways' owner InternationalConsolidated Airlines Group (IAG) was the biggestgainer of the day in percentage terms, rising 3.5 percent afterUBS upgraded the stock to "buy" from "neutral".

Also among the risers, supermarkets Morrison, Tesco, Marks and Spencer and Sainsbury added between 3.1 and 1.8 percent.

"It is very much a relief rally, with a huge bend towardsthe defensive, and that is a lot of the reason why supermarketsare benefiting today," Kelly said.

Among mid caps, specialty chemical maker Alent soared as much as 45 percent to a record high after a bid fromU.S. peer Platform Specialty, pushing the FTSE 350Chemicals Index 2.6 percent higher.

On the downside, International Personal Finance plummeted 24 percent on proposed revisions to a credit amendmentlaw in Poland, one of its biggest markets.

The FTSE 100 is up by about 2 percent since the start of2015, although the index is down 6 percent from a record high of7,122.74 points reached in April. (Additional reporting by Sudip Kar-Gupta; Editing by AndrewRoche)