UPDATE 5.17pm: A man has been taken into custody following a hostage incident at a bank in Amohau Street, Rotorua this afternoon, and the cordons on the street have been removed.

"Emergency services were called to the property at around 3.55pm today, after a man entered the property and took a group of people hostage,” says a police spokesperson.

'The hostages were released from the bank at 4.50pm and were uninjured.

'The alleged offender has been taken into police custody.

"A scene guard will remain in place at the bank where the incident took place."

EARLIER: 4.50pm: Armed police are around a Rotorua bank and a large part of a central street has been shut off.

Police could be seen around the BNZ in Amohau St on Thursday afternoon and a reporter at the scene said he could see a man inside the bank.

The person was talking to police through the door.

Police said they were 'responding to an incident at a commercial property” in the street and there were no reports of anyone being injured.

More information would be provided when available.

Fire and Emergency NZ and St John directed inquiries to the police, saying that was the lead agency.

Armed police and armed offenders squad members were around the bank, a reporter at the scene said.

Part of the street, outside the central mall, had been closed to traffic.

There were a lot of people watching and police had moved bystanders back.

- Additional reporting by Benn Bathgate/Stuff.co.nz.