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

Back ground XBRL Definition Requirements XBRL Adoption in the Banks Challenges & way forward the name you can BANK upon ! punjab national bank AGENDA 2

PUNJAB NATIONAL BANK – HO: I T DIVISION 19 TH 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 DIVISION 19 TH 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 DIVISION 19 TH 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 DIVISION 19 TH 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 DIVISION 19 TH 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 DIVISION 19 TH 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 DIVISION 19 TH 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 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 19 TH 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 DIVISION 19 TH 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 DIVISION 19 TH 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.

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