A MAN who set fire to himself at a Commonwealth bank may have been reacting to his welfare payment being rejected, a community source said.

The 21-year-old Springvale man believed to have set fire to himself in the Commonwealth bank in Springvale is thought to be an asylum seeker from Myanmar and considers himself a part of the Rohingya community.

A Rohingya Community leader said the man had lived in the area since about 2013.

The Rohingyans are a Muslim minority in Myanmar, who have faced persecution there.

Australian Burmese Rohingya Organisation president Habib Habib said he believed the man was expecting a welfare payment this week that did not come through.

The man’s mental health had deteriorated since he had been within the community, Mr Habib said.

He said he had not shown signs of mental illness while he was detained on Christmas Island but had become disillusioned about the asylum seeker process.

Mr Habib said due to restrictions on his Visa he was not able to work and his refugee claim was proceeding slowly.

The man did not have family in Australia and lived with other Asylum seekers in temporary accommodation.

Mr Habib said he was from lower Myanmar and identified as Rohingyan. He said the man also spoke the language.

Witnesses say a fireball trapped staff and customers inside the Springvale branch after the man lit matches to petrol he had poured on the floor near the entrance.

He was last night under police guard in hospital and believed to be one of two fireball victims clinging to life.

Of the six people with serious burns taken to The Alfred yesterday - this morning one remains in a critical condition, one patient is “critical but stable” and four patients are now in a stable condition.

The hospital will release another update on the patients’ conditions at 4pm today.

The horrifying incident left several people, including toddlers and elderly customers, badly hurt.

Witnesses say the man who started the blaze had picked up a plastic drum outside a shop minutes earlier.

He then visited a nearby Caltex service station, poured fuel into it and returned to the bank just after 11.30am.

He poured out petrol, lit a match and the fireball erupted. Those inside could not see for thick smoke and flames.

The Herald Sun has been told the man was a native of Myanmar who had spent time in detention on Christmas ­Island. He was later allowed into Australia on a bridging visa, but police are as yet unsure about his motive.

CCTV clue in bank fireball CCTV clue in bank fireball

But a witness said he heard the man say: “They didn’t give me no money. I’ve got no money for food.”

Tradie Ash Atkin-Fone described how he and another man ran into the bank to help.

“This kid comes running out burnt, screaming his head off, skin hanging off, blood everywhere,” he said.

“I had to. What do you do? Instinct just kicked in.”

Springvale Rd trader Tran Phan said she heard piercing screams from a man who ran out of the bank while burning.

“There were lots of screams coming from across the road,” Ms Phan said.

“I could hear a man screaming while running out as he was burning.”

A mother and her three children were among those caught up in the fireball.

Romdol Touch said her sister-in-law, Phalla Neary Khmer, and the woman’s two-year-old son, “Fighter”, and two teenage daughters, Claudia and Angel, were in the branch when the horror unfolded. Ms Touch said the family had been treated in hospital.

“They are doing fine, my sister-in-law just got burnt a little bit,’’ Ms Touch said.

“I am very, very happy — thank you, God. They just went to the bank and they wanted to open a new account or something.

“I was very, very worried — my whole body was shaking. My little nephew had a lot of smoke on his face and he was really shaking and crying.”

Friend Sophie Mach ­accompanied the family into the branch and saw the man responsible for starting the blaze.

“My friend Sophie told me one of the guys goes in with the petrol and she was close to him and she saw that he take out the matches to burn the petrol,’’ Ms Touch said.

“He just go in and just chuck all the petrol everywhere and then he start to burn.

“She was lucky she smelled the petrol. She ran outside.”

Country Fire Authority operations officer Paul Carrigg said it was fortunate no one died, given the blaze’s intensity.

“It’s amazing, very lucky no one lost their lives,” he said.

Paramedics treated 27 victims who Ambulance Victoria health commander Andy Roughton said suffered “ burns and respiratory issues”.

Acting Premier James Merlino last night extended his sympathy to the victims.

“Our thoughts are with those who’ve been caught up in this terrible incident — the injured and their loved ones, the bank staff and everyone who witnessed what happened,” Mr Merlino said.

“I want to thank the brave and dedicated emergency service workers who rushed to their aid and did everything they could to help.”

The man was discovered by police at the back of the bank.

Victoria Police Acting ­Inspector Jackie Poida said it was “too early to tell” what the man’s motive was.

“We haven’t had a chance to speak with him, he is injured and he is being attended to at hospital,” she said.

The Caltex service station where the fuel was bought remained closed last night.

Police will need to interview dozens of witnesses in what is expected to be an exhaustive investigation.

Some of the injured may not be in a position to give statements for some time as they receive intensive hospital treatment for their burns.

Investigators will also examine CCTV from the many shops on the bustling strip to work out the man’s movements before the incident.

The inquiry is being run by detectives from the arson squad.

Police are urging any witnesses who have not come forward to call Crimestoppers on 1800 333 000 or visit www.crimestoppersvic.com.au

ashley.argoon@news.com.au