CORRECTED - CORRECTED-WRAPUP 2-Profits fall at Japan banks as crisis bites

(In Nov 14 story, corrects paragraph 22 to show that overseas lending grew by more than a quarter, not nearly fivefold)

* Q2 profit halved at SMFG, Japan's No.3 bank

* SMFG President: No plan to raise capital now

* Rival Resona Q2 profit down 94 pct, Aozora has net loss

* SMFG shares end down 1.6 percent before results (Adds comment from SMFG President, details)

By David Dolan

TOKYO, Nov 14 (Reuters) - Sumitomo Mitsui Financial Group (8316.T) posted a 51 percent fall in quarterly profit as a looming recession triggers a jump in bad loans, but Japan's third-largest bank said it had no plans to follow its rivals in raising capital.

Sumitomo Mitsui, which took a 2 percent stake in Britain's Barclays (BARC.L) earlier this year, stuck to its recently lowered forecast for a 61 percent decline in profit this year.

The bank's profit slide matches that of other big Japanese banks, underscoring the bleak outlook for lenders in the world's second-largest economy as the global financial crisis hits growth.

Resona Holdings (8308.T), which is still nearly half-owned by the government following a public bailout, saw its net profit tumble 94 percent for the quarter, waylaid by rising bankruptcies among small-business borrowers.

Aozora Bank (8304.T), which is about one-third-owned by private equity firm Cerberus Capital Management [CBS.UL], posted its third net loss in four quarters and said it would fall to a loss for the year. [ID:nT142GHTIJ]

Once thought to be relatively unharmed by the global credit crisis, Japanese banks are now also scrambling to raise cash, as a sagging economy and over-exposure to plunging domestic stocks sap their capital.

Some analysts expect figures out next Monday to show Japan's economy has slid into recession, with anaemic growth at best for the latest quarter. [ID:nT36454]

"We will likely see more economic data indicating that the situation is getting worse," said Yoshikiyo Shimamine, chief economist at Dai-ichi Life Research Institute.

"For the past year the spotlight has been on losses on securitised products but now banks are facing a downturn in earnings from the economic slump."

The country's two largest banks, Mitsubishi UFJ Financial Group (8306.T) and Mizuho Financial Group (8411.T), have announced plans to raise as much as $13.5 billion between them to shore up their balance sheets.