Armed police rushed to a Rotorua bank as a hostage drama unfolded after a man entered the building and refused to let customers and staff leave yesterday afternoon.

A tense and nervous 45 minutes of negotiations began at the BNZ at the Rotorua Central Mall from about 3.55p.m, which was surrounded by heavily armed police.

The 35-year-old man now faces multiple kidnapping charges and is scheduled to appear in the Rotorua District Court today.

“Help! Help! Police help me!” one man could be heard yelling from the branch yesterday.

After a terrifying period, the hostages were released uninjured, police said, but were visibly upset.

Police were understood to be communicating with someone inside the bank, who was holding up a pad of paper to the window, a reporter on the scene said.

The alleged offender appeared calm when they were eventually taken into police custody.

Rotorua Mayor Tania Tapsell told Newstalk ZB it’s surprising and distressing when “this happens in your own backyard”.

“Apart from the emergency housing issues we’ve been having, it’s been a very safe community,” Tapsell said.

She said police responded quickly but claimed the city’s residents were “very lucky” police were able to do so.

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“We have been crying out for more police resources and we are short-staffed here, in this case, we were just very lucky.”

Tapsell also said the Rotorua Lakes Council was working hard to piece together the series of events using CCTV to assist with the police response.

Armed police surrounded the BNZ bank branch in Amohau St, Rotorua. Photo / Andrew Warner

Several witnesses reported seeing a man with a gun, however, police said the alleged offender was unarmed.

Police couldn’t confirm if the person had an imitation firearm or if he was making bomb threats when asked by the Herald.

Kereama Wright of Aukaha News told Newshub last night that an elderly man was pleading with police to let him speak with the alleged offender so he may “switch places with his wife” who was being held hostage inside.

“His wife has worked at that BNZ for many years,” Wright said. “He was visibly upset, and was hoping to be able to replace his wahine who was inside the bank.”

The Rotorua Daily Post reported that a customer went into the bank and noticed a staff member looking stressed.

The source said when the person in the bank mouthed the words “are you okay” to the staff member, he then saw someone emerge from behind. Realising something was seriously wrong, the man quickly left the bank.

A worker in a store near the BNZ bank said a friend was a customer in the bank and was trapped inside.

She said she had sent her a text message saying they were being kept there but was hoping it would be resolved soon.

“She told me there are a few of them inside but seemed to think they were going to be rescued shortly. I told her to stop texting me.”

Sally Smyth was in the mall when the incident kicked off, and was told by a store staffer, “we need to leave.”

“As we walked out of the store an armed police officer directed us to the left towards the Victoria St exit. The other shops were rolling down their doors and everyone seemed to be calmly leaving the mall.”

She described the mall staff as “calm and professional” in the face of a terrifying situation.

Customers and staff leaving the branch after being held hostage. Photo / Andrew Warner

Another woman inside the Rotorua Central Mall Warehouse close to the BNZ, and said they were told to quickly ditch their trolleys and were directed outside.

“Someone said there was a gunman at the BNZ, but at that point, we really didn’t know what was going on, just that we needed to get out,” the woman said.

“I really hope the staff inside the BNZ are okay, it must’ve been absolutely terrifying for them.”

BNZ CEO Dan Huggins thanked the actions of the police.

“The safety of our team members and customers is always our top priority, and I’m glad they’re all safe,” he said. “Support is now being provided to those in the branch at the time of the incident.”

Cordons were established on Amohau St and members of the public were asked to follow the directions of emergency services at the scene.

The cordons have since been removed but a scene guard was in place at the bank last night.

Four ambulances were also sent to the scene as a precaution.