At least three masked gunmen entered the Jammu and Kashmir Bank branch at Noorpora in Tral area, 36 kms from here, and took away Rs 1 lakh from the cash counter, they said.
CCTV footage of the incident revealed that the militants damaged one of the surveillance cameras in a vain bid to prevent themselves from being caught on tape, police said.
Meanwhile, a police spokesman said the locals forced the militants to retreat as they attacked the robbers with stones.
He said the militants managed to take around Rs one lakh with them.
"A manhunt has been launched to nab the culprits," police added.