All hostages are out, State Representative in the Kakheti Region Irakli Shioshvili told GPB First Channel.
Interior Ministry also confirmed the information, adding that the operation is underway to arrest the assailant.
An armed man remains in the bank building. The negotiation is underway, Shioshvili said, the gunman demands different amounts of cash.
Eyewitnesses say the gunman was holding a grenade in his hand and threatening to blow it up. He broke into the bank in Kvareli town at 4 pm local time. Reportedly, he was demanding half a million to release the hostages.