Mumbai, Oct. 20 -- Large banks State Bank of India (SBI), HDFC Bank, and Axis Bank as also smaller public sector lenders believe they can easily transition to a new credit loss model proposed by India's central bank under which banks have to recognize stress much earlier.

Analysts bet that private lenders will fare better.

Senior bankers said lenders can manage the transition comfortably many even before the five-year glide path ends in 2032. They believe that strong profitability will help banks tide over demands that extra provisions will make on them. In fact, even by a Reserve Bank of India (RBI) analysis published in June, adequate high quality equity capital, declining loan losses and credit costs, and solid profitability lend cre...