Relationship marketing (RM) is gaining momentum with the advent of new marketing philosophies. RM proves as an aid to long term retention of customers, more market share, customer satisfaction, imparts customer benefits, raises competition and what not. The present study takes into consideration the existing literature and is descriptive in nature which examines the impact of RM of banks on the business performance of small & medium enterprises. Primary data were gathered from 183 branch managers of Jammu & Kashmir Bank (62 branches) through structured questionnaire. Principal component analysis and Exploratory factor analysis was run to reduce the data. The factor RM benefits comprised of four measured indicators, viz., Convenience benefits, Time saving benefits, Advisory benefits and better financial decisions. The confirmatory factor analysis model has been found to have a good fit as all regression weights are above 0.50. The results indicated that market orientation significantly influences business performance and RM directly influences Business Performance. Hence, the present study makes an effort to unearth the impact of relationship practices of banks (service provider) on the business performance of SMEs (customers). The study presumes to be useful for researchers, practitioners, marketers and policy makers. The study is confined to Jammu and Kashmir Bank (JKB) branches and their SMEs operating in two industrial areas.