TBILISI (REUTERS) - An unidentified gunman took up to 20 people hostage in Georgia on Wednesday (Oct 21) in a branch of the commercial Bank of Georgia in the town of Zugdidi, the TV channel Mtavari quoted police as saying.

Negotiations were under way and the gunman, who was masked and wore a military uniform, was demanding a sum of US$500,000 (S$677,185), the channel reported.

One hostage, a pregnant woman, was released, said police, who blocked the area around the bank in the town centre.

The gunman gave the police two hours to meet his demands, but the deadline expired without further developments.