A man will face court after the Commonwealth Bank at Springvale was damaged by fire last year.

An asylum seeker accused of setting fire to a suburban Melbourne bank, injuring dozens of customers and staff, allegedly wanted "retribution" after waiting a long time to be served.

Police allege Nur Islam, 22, poured petrol in the doorway of the Commonwealth Bank at Springvale on November 18 before lighting it, causing a large fire.

"Pandemonium" ensued as customers and staff stampeded to escape, Melbourne Magistrates Court was told on Tuesday.

He faces 108 charges including arson, property damage by fire and intentionally causing injury, but says he didn't want to hurt anyone.

It is alleged the "unlawful non-citizen" from Myanmar had intended to withdraw the balance of his account - $442 - but became frustrated at having to wait.

"It appears that he was angry at the length of time he had been kept waiting," court documents read, adding he walked to a nearby service station, buying 11.33 litres of fuel for $14.71.

"He had clearly at this time decided he was going to set fire to the Commonwealth Bank as an act of retribution for his earlier treatment," prosecutors allege.

He returned to the bank, pouring the petrol in a trail from the ATMs into the bank's interior before retrieving a cigarette lighter from his pocket and igniting the fuel, the allegations continued.

A DVD was played to the court, including footage from five CCTV cameras inside the bank, seemingly showing Islam pouring the petrol from a large container on the floor, prompting terrified customers to run from the building.

The footage seems to then show Islam setting fire to the fuel, engulfing himself in flames, while a bank employee is burnt by the fireball.

Dozens of people were treated for burns after the blaze, police say.

Defence lawyer Barnaby Johnston said Islam admitted setting fire to the bank but never intended to hurt anyone, denying 33 charges of intentionally causing injury and serious injury.

"He suffered the most significant and catastrophic injuries as a result of this incident," Mr Johnston said, adding that Islam spent four months in hospital with burns to 60 per cent of his body.

He said Islam thought: "I don't want to hurt other people".

The court was told the bank was destroyed, causing $3 million worth of damage.

Magistrate Peter Reardon directed Islam, who has been in custody since the incident, to stand trial at the County Court of Victoria and to appear on Wednesday for a first directions hearing.

The court was told a mental health assessment of Islam, who still nurses an injured left forearm, would be completed in coming weeks.