Nonperforming loans at South Korean banks edged down in the third quarter from three months earlier due to a decline in overdue corporate loans, data showed Thursday.

Nonperforming loans came to 14.1 trillion won ($12.7 billion) at the end of September, down 900 billion won from the end of June, according to the data from the Financial Supervisory Service (FSS).

Overdue corporate loans reached 12 trillion won at the end of September, compared with 12.8 trillion won from a quarter earlier, the data showed.

Nonperforming loans by households fell by 100 billion won to 1.9 trillion won at the end of September, it showed.

The FSS said the ratio of bad loans to total lending came to 0.65 percent at the end of September, down 0.06 percentage point from a quarter earlier. (Yonhap)