FTSE tentatively rallies after biggest weekly drop of 2015

* FTSE 100 up 0.5 pct in low volume

* Financials add 11 points to index

* CRH (NYSE: CRH - news) drops on Holcim (Other OTC: HCMLF - news) -Lafarge (Paris: FR0000120537 - news) concern

By Alistair Smout

LONDON, March 16 (Reuters) - Britain's top share index edged higher on Monday, recovering from its biggest weekly drop of 2015 to head back towards all-time highs hit earlier this month, buoyed by a rally in financials.

The FTSE 100 was up 0.5 percent, rising 32.50 points to 6,773.08 by 0913 GMT.

It dropped 2.5 percent last week in its biggest weekly fall since December, which saw it touch its lowest levels in nearly two months.

Monday morning's rise left the FTSE 100 3 percent off an all-time high last hit on March 2.

Financials added 11 points to the FTSE 100. Banks rose 0.5 percent after a 5.6 percent fall since Feb 23., coming under pressure from a stand-off over Greek debt and speculation over a U.S. rate hike.

Traders cited conciliatory statements from the new Greek government as encouraging. However, the rally was made in very thin volumes.

The FTSE 100 traded 8.7 percent of its 90 day average by 0910 GMT, compared to 15.8 percent of the average on the German DAX

"We're seeing a low-volume bounce after the falls of last week, with some of the aggressive rhetoric out of Greece having calmed down," said Manoj Ladwa, head of trading at TJM Partners.

"Heading into the general election and potential for a U.S. rate hike in the summer, the market could become quite volatile, and last week's moves are a small taster of that."

Despite the tentative rebound, CRH dropped 2.7 percent, the top FTSE 100 faller.

The Irish building materials firm has agreed to buy cement assets from Holcim-Lafarge, in a deal that has been well-received by the market.

However, the deal for the assets depends on the merger completing, and divisions between Holcim and Lafarge are building. (Editing by Dominic Evans)