An Absa automated teller machine (ATM) situated inside a Newcastle pub was blown up, police said on Thursday.

Captain Shooz Magudulela said the incident took place in Newcastle's Industrial area late on Wednesday night.

"A security guard was found tied up this morning (Thursday) and he had been like that since 9pm last night," said Magudulela.

Police said four men bombed the ATM and when they failed to get any money, they vandalised the pub.

"They also stole a substantial amount of liquor," he said.

Magudulela said no one had been inside the pub at the time of the ATM blast.

"But we suspect that the four were patrons at the pub earlier in the day. We believe they were keeping watch."

No arrests have been made yet.