A policeman was wounded after suspected militants fired outside a bank in south Kashmir's Shopian district on Friday afternoon, police said.
They said Sartaj Ahmed was on duty outside the bank at Pachdoora area when he was attacked.
Ahmed received bullet injuries in both his hands and has been admitted to the Bone and Joints hospital in Srinagar, nearly 50km away from the site of the shoot-out.
No militant group claimed responsibility for the attack till this report was filed, but police have already begun a manhunt for the attackers.
The incident comes hard on the heels of a string of attacks across the Kashmir Valley earlier this week. While four soldiers and two militants were killed in two separate attacks in north and south Kashmir on Monday, two civilians associated with telecom companies were killed in the volatile Sopore district.
On Tuesday, militants snatched an automatic rifle along with a magazine from a cop in the Pulwama district.