GONDA: A man on Wednesday set himself on fire outside a bank here and his family alleged that he tried self-immolation because his loan was not sanctioned.

Twenty-five-year-old Divyaraj Pandey sustained 70 per cent burn injuries and is in critical condition, police said, adding that he has been taken to Lucknow for treatment.

Pandey's friend Pradeep too sustained burn injuries and has been hospitalised. Taking note of the incident, a magisterial probe has been ordered by the district administration.

The State Bank of India (SBI), meanwhile, said no loan application from Pandey was pending.

According to police, Pandey, who is a resident of Sarhara Pandey Purwa in Itiyathok area, immolated himself using petrol from his motorcycle in front of SBI bank in front of city Kotwali.

Pandey and his friend Pradeep sustained burn injuries and were rushed to a hospital, Station House Officer of City Kotwali Police Station Sanjay Kumar said.

Pandey's family members alleged that he had applied for a loan to start an RO water plant but the bank officials were not sanctioning his loan due to which he took the drastic step.

Regional manager of SBI, Gyan Prakash, denied the allegations levelled by Pandey's family.

In a statement issued here, Prakash said an unknown person tried to do an "illegal act" in front of the bank.

"No matter related to his loan was with the bank," Prakash said.

District Magistrate Neha Sharma has ordered a magisterial probe into the matter and appointed City Magistrate Chandrashekhar as the investigative officer, officials said.