PUNJAB NATIONAL BANK – HO: I T DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !

R.I.S SidhuR.I.S SidhuChief General ManagerChief General Manager

1

Paper Based Reporting system

Electronic transmission

of Data

XBRL

the name you can BANK upon !

punjab national bankAGENDA

2

PUNJAB NATIONAL BANK – HO: I T DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !3

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !4

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !5

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !6

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !7

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !8

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !9

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !10

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !11

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 DIVISIONPUNJAB NATIONAL BANK – HO: I T DIVISION1919THTH June 2006 June 2006

punjab national bank

the name you can BANK upon !12

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.

Latest technology

for hassle free & speedy banking with

PNB

punjab national bank

Customer satisfaction – our motto13