In most cases it does not interrupt the band.
‘Interrupt the battle’ interrupts all active ongoing abilities on characters and enhancements (e.g. Red Dragon), abilities that are causing you to lose the battle by removal (e.g. King Zimri), as well as the last enhancement played in the current battle if it was played by your opponent.
The only way it would interrupt the banding is if you played an enhancement that bands a bunch of characters into battle, and then they played the interrupt.