PUNJAB NATIONAL BANK

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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 !
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punjab national bank
Agenda
XBRL Banks Initiative
AGENDA
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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
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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
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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
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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 !
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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 !
13
punjab national bank

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• PNB

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