Nur Islam, 22, was caught on camera calmly entering the Commonwelath Bank in Springvale and then pouring petrol from a 20-litre container in the doorway.
It is believed Islam, from Myanmar, had wanted to withdraw $442 from his account but became angry because he had to wait a long time.
So he allegedly walked to a nearby service station and bought 11.33 litres of fuel for $14.71.
He then returned to the bank, poured the petrol in a trail from the ATMs into the bank’s interior before using a cigarette lighter to ignite the fuel, police claim.
Footage shows him bending down and igniting the fuel using a lighter from his pocket, which then sparks a large fire which engulfs his entire body.
Thick black smoke fills up in the bank as the fire continues to spread causing customers to flee.
The fire, which happened on November 18 last year, destroyed $2.5 million building and injured 33 people, including children.
Islam, who spent four months in hospital with burns to 60% of his body, appeared in the Melbourne Magistrates Court today and admitted to lighting the fire but said he ‘did not intend to hurt anyone’.
He told the court he was ‘angry at being kept waiting’.
He faces 108 charges in total including arson and property damage by fire.
His lawyer, Barnaby Johnson, said the footage showed Islam pouring petrol onto the floor, stepping in the centre of the puddle and appearing to have ‘deliberately lit himself’.
Mr Johnson added: ‘He suffered the most significant and catastrophic injuries as a result of this incident.’