So far, three women were arrested during the raid with suicide vests, a pistol, a magazine and some gunpowder.
It's highly unlikely that any other members of the group are hiding inside the house, but the law enforcers are taking their time to round off the raid.
A bomb disposal unit from Dhaka arrived at the house near the Upazila town’s Taltola Mosque around 5pm on Saturday and started working on defusing the bombs.
By the evening, they conducted controlled explosions of two bombs. Loud bangs were heard at 6:08pm and 6:46pm.
Deputy Inspector General of Khulna Police range Habibur Rahman is leading the joint operation.
Earlier in the afternoon, UNO Mizanur Rahman said they had imposed Section 144 restricting movement of vehicles and pedestrians in a 500 yards radius of the house until further notice.
The police started the operation early Saturday that coincided the first anniversary of the attack on Holey Artisan Cafe in Dhaka's Gulshan.
The house belonging to Nasima Khatun was surrounded around 12am on Saturday based on information from the counterterrorism unit, said Kushtia Superintendent of Police SM Mehedi Hossain.
The counterterrorism unit and police then started a joint operation around 3am, he said.
Three women were arrested during the raid. Two suicide vests, a pistol, a magazine and some gunpowder were seized from the house too.
The arrestees have been identified as Neo-JMB leader Ayub Bachchu aka Shojib's wife Tithi; Sumaiya, the wife of the militant outfit's second-in-command Arman Ali; and Toli Begum, the wife of Rajikul aka Rashed aka Talha.
Sumaiya’s child was with her when she was taken into custody.
Militants rented the tin-roofed house belonging to Nasima nearly two months ago, police said. She was later taken to Bheramara Police Station for further questioning.