BANKS have been told to double credit to small and medium enterprises (SMEs) in 2005-2010. SMEs manufacture about 8,000 products, accounting for 6% of the GDP, 34 % of national exports. They also 30 million people. According to data available, in Punjab the banks have up to to June 2007 provided assistance to 88,990 SME units amounting to Rs 10,801.33 crore. Out of these, as many as 56,943 units or around 64% of the total units are having initial investment in plant and machinery up to Rs 5 lakh. The amount of financial assistance provided to these units is to the tune of Rs 1,241.94 crore.Similarly, there are 17,869 or around 20% units financed by banks where investment in plant and machinery is in the range of Rs 5 lakh to Rs 25 lakh. The amount of financial assistance provided to these units is to the tune of Rs 1,950.81 crore or 18.06 % of the total credit provided to the SME sector. Further, there are 10,709 or around 12% units financed by banks where investment in plant and machinery is in the range of Rs 25 to Rs 1 crore. The amount of financial assistance provided to these units is of the order of Rs 4,097.10 crore or around 38 % of the total credit under the SME sector. Data shows that there are 3,469 units financed by the banks where investment is in the range of Rs 1e crore to Rs 10 crore. The amount of financial assistance provided to these units is to the tune of Rs 3,511.48 crore or 32.5 % of the total credit under the SME sector. During the first quarter of 2007-08, specialised SSI/SME bank branches sanctioned loans to the tune of Rs 110.15 crore in Punjab to 486 SSI units and disbursement has been of the order of Rs 82.37 crore. Up to June 2007, specialised SSI/SME branches of different banks sanctioned loans to the tune of Rs 2,306.66 crore to 19,053 SSI units and disbursement has been of the order of Rs 1,988.92 crore.