UPDATE 1-Big French bank repaying state aid-Sarkozy

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PARIS Oct 5 (Reuters) - A second large French bank is following BNP Paribas (BNPP.PA) in repaying assistance provided by the state during the financial crisis, President Nicolas Sarkozy said on Monday.

"Last week, BNP paid back 5 billion euros ($7.27 billion) that we had lent it. Another large bank will do the same thing this week," he said during a speech on measures to help small and mid-sized companies.

BNP last week announced a rights issue to raise 4.3 billion euros and help it make an early repayment of a 5.1 billion euros capital advance from the state, although it has not yet completed the reimbursement.

Sarkozy gave no details on the bank concerned but an official in the office of junior business minister Herve Novelli said he was referring to Credit Mutuel, which was reported last week to be repaying 1.2 billion euros to the government.

Sarkozy said the interest paid by banks on the loans had brought in 500 million euros so far, raising the equivalent of a recently announced package of aid to help young people find work. (Reporting by James Mackenzie and Yves Clarisse; Editing by Toby Chopra)