District superintendent of police Chandan Kumar said seven armed miscreants entered the bank in the afternoon and three of them held the bank employees and manager captive at gunpoint and looted the money from the cash counter.
They then made good their escape.
The bank is barely 100 yards away from Katoria police station.
Its manager Rishikesh Kumar informed the police, who rushed in and began investigation, the police superintendent said.
Police are conducting raids to nab the culprits, he added.