Unidentified gunmen barged into the bank branch at Yaripora and looted Rs 65,000 in cash at gunpoint.
The Hizbul Mujahideen outfit claimed responsibility for the attack.
While two terrorists were killed in Kupwara as many were eliminated in Kulgam, they said, adding some more terrorists are hiding and operation was still underway in both the areas.
Suspected terrorists on Wednesday targeted two banks in south Kashmir's Pulwama district within a span of two hours and decamped with several lakh rupees.
The cash transactions have been stopped at the branches belonging to the Jammu and Kashmir Bank and Ellaquai Dehati Bank.
Violence continues to scorch south Kashmir following the killing of 'poster-boy' militant Burhan Wani with the death toll going up to 34.
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