* Australian banks under pressure on concerns over rising bad debt
* Health stocks also underperform
* NZ market continues to rise, rate easing expectations help
By Cecile Lefort and Charlotte Greenfield
SYDNEY/WELLINGTON, March 29 (Reuters) - Australian shares slumped to one-month lows on Tuesday, pressured by losses in the financial sector on concerns over rising bad debt, while the New Zealand market edged up slightly.
Australia's S&P/ASX 200 index .AXJO was down 0.8 percent, or 41.1 points, at 5,043.1 by 0158 GMT.
The index hit a low of 5,040.500 earlier, levels not seen since March 3, although it's still up 3.5 percent this month thanks to fading expectations the Federal Reserve will resume raising rates soon.
Banking stocks were a major drag on the index, led by a 3 percent drop in Australia and New Zealand Banking Group (ANZ) shares ANZ.AX . ANZ fell to a one-month low, having been hit hard since last week's revelation that bad debts were rising.
Commonwealth Bank CBA.AX , Westpac Banking Corp WBC.AX and National Australia Bank AB.AX all fell between 1.5 percent and 2.2 percent.
Health stocks also came under pressure with the index .AXHJ down 1.5 percent. The sector has been clouded by rising operating costs.
New Zealand's benchmark S&P/NZX 50 index .NZ50 gained 23.620 points, or 0.4 percent, to 6,686.17, a whisker away from Thursday's record high of 6,692.09.
The index has leapt 7.3 percent so far in March, which if sustained would mark the biggest monthly gain since 2009.
Analysts say an interest rate cut by the Reserve Bank of New Zealand (RBNZ) earlier in the month and expectations of more policy easing have helped underpin appetite for stocks.
Local units of Australian banks led gains, with ANZ ANZ.NZ rising 4.3 percent and Westpac WBC.NZ up 1.7 percent.
Property companies also advanced, with Kiwi Property KPG.NZ rising 1.1 percent and industrial property investment company Property for Industry PFI.NZ up 0.9 percent.
Health software provider Orion Health Group OHE.NZ led losses, falling 1.6 percent, while consumer goods retailer Warehouse Group WHS.NZ lost 0.7 percent.
Veritas Investments VIL.NZ plummeted 14.81 percent after the investment company announced its joint venture partners were winding down one of its food production companies. more individual stocks activity click on STXBZ
(Editing by Shri Navaratnam)