Customers and staff who were held hostage inside a Rotorua bank during an armed police incident this afternoon have now left the branch after a nervy hour of negotiations.

Police said emergency services were called at about 3.55pm after a man entered the BNZ at the Rotorua Central Mall and took a group of people hostage.

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

“Help! Help! Police help me,” one man could be heard yelling.

Staff and customers have now safely left the branch.

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

The hostages were released from the bank at 4.50pm and were uninjured, police said. Four ambulances were at the scene as a precaution.

The alleged offender has been taken into police custody.

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 will remain in place at the bank where the incident took place.

Armed police surrounded the BNZ branch. Photo / Andrew Warner

The Rotorua Daily Post has been told of a man who went into the bank and noticed a staff member looking stressed.

The source told the Rotorua Daily Post 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.

BNZ CEO Dan Huggins thanked the actions of the police and confirmed the incident has been resolved.

 “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.”

A worker in a store near the BNZ bank has told the Rotorua Daily Post a friend was a customer and was trapped inside the branch.

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 began 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.

Ambulances at the scene. Photo / Rotorua Daily Post

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

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