The Brazilian police said they killed 11 people who were part of a gang of at least 25 people who raided the two banks.

"The gangs were about to put explosives into ATM machines in a branch of a bank when the police officers arrive," Sao Paulo state police said in a statement.

The shootout occurred on Thursday night after police located the house where the alleged bank robbers were hiding after robbing a bank in Aguas Belas in the state of Pernambuco.

The group of robbers arrived at the bank in two vehicles according to witnesses and fired several shots as they fled through the city. The police launched a manhunt to track them down.

Police involved in the operation used 7 assault weapons, 4 pistols, explosives, a bulletproof vest, and five armored vehicles said police department.

Santander and Banco Brasil banks, the target of the robbers, reported that there was no theft.

One of the residents said an attacker broke into his house to kidnap his family and hold them hostage, but the officers managed to stop him.

said Fabio Costa, a civil police commissioner.

"There was an intense gun battle and the criminals were killed," said Fabio Costa, the civil police commissioner.

In addition, police found a large number of explosives, rifles, shotguns, pistols, and money. 

According to police, the 11 people had prison terms for other crimes. (ILKHA)