OSLO, March 16 (Reuters) - Norway's DNB, the country's largest bank, will be allowed to acquire online rival Sbanken, the Norwegian Competition Tribunal (NTC) ruled on Wednesday, overturning an earlier ban.

The Norwegian Competition Authority had sought to block the proposed 11.1 billion Norwegian crowns ($1.24 billion) deal, arguing it would hurt the mutual funds market. ($1 = 8.9210 Norwegian crowns) (Reporting by Terje Solsvik, editing by Gwladys Fouche)