Fourteen listed commercial banks reported a total of 385.97 billion yuan in overdue loans by the end of June, up 6.35 percent from the same period last year, according to first half reports of the banks.

As of August 29, 14 listed commercial banks have published their financial results for the first half, 11 of which saw an increase in overdue loans, with the exception of Agricultural Bank of China, Shenzhen Development Bank and Huaxia Bank. Eight banks registered a more than 10 percent year-on-year rise in overdue loans.

An analyst from Galaxy Securities told Caixin that the rise in overdue loans was a reflection of the overall slowdown in the economy. The analyst added that the monetary tightening policies have created a capital crunch among many companies.

According to Minsheng Bank, most overdue loans appeared in the second quarter and consisted of corporate loans, retail loans and the credit card business. Minsheng reported a 750 million yuan increase in overdue corporate loans at the end of the first half compared to last year.

Analysts said that the rise in overdue loans may not necessarily result in non-performing loans for the rest of the year, as a key factor will be the economic situation in the second half.

Among the big four state-owned banks, Bank of China saw the biggest jump in overdue loans in the first half at 10.13 percent. Industrial and Commercial Bank of China led by the largest amount at 108.2 billion yuan, up 5.7 percent from the beginning of the year.

By intern reporter Wang Shenlu