UPDATE 1-BRE Bank Q3 net down 63 pct on rising bad loans

* Net profit 72.5 mln zlotys vs 76 mln forecast

* Takes 249 mln zlotys in provisions

(Adds details, background)

WARSAW, Nov 4 (Reuters) - BRE Bank BREP.WA, the Polish unit of Germany's Commerzbank (CBKG.DE: Quote, Profile, Research), reported a 63 percent drop in net profit in the third quarter because of rising provisions for bad loans.

BRE Bank said it earned 72.5 million zlotys ($24.6 million), just below an average forecast of 76 million in a Reuters poll.

Its provisions rose to a higher-than-expected 249 million zlotys, weighed by losses on retail cash loans which the lender had pushed aggressively only to see a large chunk go sour.

On the positive side, the bank cut reserves related to its customers' bad bets on the Polish zloty, which pushed it to a loss in the second quarter, by 7 million zlotys.

BRE Bank made large provisions in the previous three quarters for its exposure to losses on foreign currency derivatives made by some of its corporate clients before the zloty plunged against the euro.

Shares in BRE have risen by nearly a third this year, outperforming a 20 percent rise for Warsaw's banking index .BNKI. (Reporting by Chris Borowski; Editing by Erica Billingham)