Australian bank shares are being hammered

<> on April 8, 2015 in Hayward, California.

The downturn in the mining sector, caused by a global rout in commodity prices, has caught up with the major banks.

Shares in the ANZ were falling hard in early trade today after the bank announced its bad debts would be worst than anticipated.

A short time ago, the shares were down 5.3% to $23.99.

The ANZ said recent developments with resources-related loans will increase the total group credit charge by at least $100 million to total more than $900 million for the six months to the end of March.

Shares in the other major banks were also falling. Westpac had lost 3.7% to $31.13, the NAB 3% to $26.40 and the Commonwealth 2.3% to $74.91.

The combined weight of the drop in banks dragged the rest of the market under. The ASX 200 was at 5,076.20, down 66.07 or 1.28%.

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