Sme startup

Firstly, it is important to check your employment contract for any restrictions that prevent you from engaging in any other business (Most companies, especially in the IT sector, have such provisions).

In the event you are clear on this front, my suggestion would be to start off as a sole proprietorship. In case it does well and you do this full-time, you can always convert to a private limited company or LLP.

I dont think so that i will have issues doing business while working, also if I start it as a proprietorship does it has more risk?? Also which bank is better for SME..

It is always better to start the SME on proprietorship basis, establish and then go for partnership or LLP etc.  To begin with and for other formalities, you may consult a local consultant for getting into the things properly as well as legally.