PUNJAB NATIONAL BANK – HO: I T DIVISION

1. punjab national bank Electronic transmission of Data Paper Based Reporting system XBRL R.I.S Sidhu Chief General Manager PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

2. punjab national bank Agenda AGENDA XBRL Bank’s Initiative 2 the name you can BANK upon !

3. punjab national bank XBRL Background • Information is the backbone of the effective monitory system • The Banking system has adopted technology to a varying level but reporting within the Bank and to the regulator has not been improved to a great extend. • Banks adopted “IT” but the “I” is missing, it is only the “T” which is visible. • Although the reporting format is standard, the reporting on many occasions are not timely and accurate. • Multiple data entry leads to data validation and avoidable mistakes. • Thus the reporting system needs a seamless process of submission of data and metadata as per International standards. PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

4. punjab national bank XBRL Definition • eXtensible Business reporting language • Language for electronic communication of business and financial data. • It benefits the creator of the data, user of the data • It facilitates quick and timely transmission and instantaneous use at the recipient end. PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

5. punjab national bank XBRL Requirements • XBRL document is made up of taxonomy and instance documents. • Taxonomy defines the concepts and interrelationships. • It is description and classification of business and financial terms. • Electronic dictionary for financial terms. • Instance document has facts and values. PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

6. punjab national bank XBRL Adoption in the Banks • At Present the Banks Follow almost the same process for preparing the returns. • Mostly the data are captured in the Excel format and the banks are fairly familiar with the Excel • The automation level is high at the Banks. • Major data source is CBS. • Data is collated from CBS and other non CBS systems like Treasury, Fex etc. and converted to RBI format • The data is entered in RBI data capturing tool PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

7. punjab national bank XBRL Adoption in the Banks • Adopting the Tags may not be a difficult proposition. • Tags or elements can be mapped to the identified returns financial terms. • The Financial terms are common across many returns and hence the adoption will be easy. • It is to be adopted in simple reports without any conditional values. • Best practices of the overseas locations to be adopted. • As it is an evolving model, there is no plug and play solution. PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

8. punjab national bank XBRL Adoption in the Banks • The Excel format may be used to begin with • The Taxonomic / Vocabulary is to be used throughout the life cycle of the information and hence the data capture stage onwards the accuracy is to be ensured. • Since some of the data elements used may have different definition, the taxonomic take into consideration all the variants. • The success of the XBRL implementation depends on the correct and accurate use of the vocabulary. • These are to be used as tags in the tools. • In the second phase web based interface may be developed between the regulator and the Banks PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

9. punjab national bank XBRL Adoption in the Banks • Financial services companies in Japan have been reporting monthly data in XBRL to Bank of Japan since Jan 2006. • Bank of Japan says • “The introduction of XBRL for monthly balance sheet information has led to a significant reduction of data validation and other gains in efficiency” • Spain , Belgium have taken steep strides in XBRL implementation • Larger Households , business houses , Institutes have adopted XBRL reporting. • Their GDP is computed based on XBRL reporting. PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

10. punjab national bank XBRL Adoption in the Banks • Challenges • Data accuracy and the availability of the granular data. • Taxonomic / vocabulary for all the granular data and its uniqueness • Data validation at the data capture stage • Legacy data , which may not be available at granular level. PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

11. punjab national bank XBRL Adoption in the Banks • Way Forward • Strengthen the data validation at the entry level. • Adopt the best practices and define the vocabulary for every bit of information and usable across the industry verticals. • Enable granular data capture at the entry level. • The legacy data has to be expanded by capturing additional granular details. • XBRL to be adopted by the corporate houses for reporting their financial results, which will benefit Income tax, SEBI, Financial institutes PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

12. punjab national bank XBRL Adoption in the Banks • Based on the XBRL reporting, Banks can • Analyze the credit requirements • Assess & Finalise the exposure • Effectively monitor within the time line. • Data mismatches and recapturing can be avoided. • Basel II reporting as per the RBI initiatives • Forms X and Monthly revenue analysis are some of the other reports , which can be brought under XBRL reporting. PUNJAB NATIONAL BANK – HO: I T DIVISION 19TH June 2006 the name you can BANK upon !

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