AFTER reversing a decision to close its Bendigo Bank branch in Korumburra in June 2021, following a concerted local campaign, the bank has again announced this week that the branch will close.
Bendigo Bank is also closing its branch at Yarram.
The Korumburra branch is set to close on Friday, August 29 and the Yarram branch on Friday, September 26.
Both towns will be left without banking services as a result.
But at Yarram at least, they’re not taking the decision lying down.
Whether Korumburra can mount another campaign to save is branch is yet to be determined.
One of the Yarram branch’s best customers, David Phelan, the principal of livestock agent Phelan & Henderson & Co, turning over $20 million in payments to clients annually, is extremely upset, not only with the fact that the bank has announced its plans to close, but also that their customers were the last to know.
“They came down to Yarram last Wednesday and told the staff who were sworn to secrecy,” said Mr Phelan.
“But you can’t keep something like that quiet. I got a phone call on Thursday morning to say what was happening and I immediately got on the phone.”
Mr Phelan said he ultimately got through to the State Manager who has since committed to coming to Yarram on Monday next week to talk to some of the key account holders including Phelan and Henderson, the Yarram Country Club, Mirradong disability services, the hospital and several others.
“They told staff and the CEO of the shire before they told their customers. It’s simply unrealistic to think we’re going to get in the car and go to Traralgon.”
Mr Phelan said the first line of advocacy would be to try to convince Bendigo Bank that they need to stay in Yarram, especially given the town’s isolation, but would be prepared to accept a service that was open three days-a-week; Monday, Thursday and Friday.
“Monday would allow the pubs and other businesses to bank their weekend takings, and Thursday and Friday would suit the farmers coming into town and also the pensioners.”
Mr Phelan said Yarram was a unique commercial centre in regional Victoria, effectively being an hour away from a bigger town that could provide banking services.
But he also acknowledged the other banks had been no better.
“They all seemed to get their heads together. Westpac left first, then the NAB and the ANZ which didn’t cover themselves in much glory. They told people to go to Foster and then a few months later, they closed Foster. The Com Bank did something similar.
“We’ll see what Monday brings but we’re not just rolling over,” said Mr Phelan.
‘Disgraceful’ says Darren Chester MP
Member for Gippsland Darren Chester wasted no time calling it out, issuing a statement of support for the Yarram and Korumburra communities on Thursday and hotly criticising Bendigo, as follows:
Darren Chester MP has slammed a decision by the Bendigo Bank to shut two branches in the region without any consultation with staff or customers.
Mr Chester said he had received a letter from the bank dated June 25, advising it would close two retail outlets located in Yarram and Korumburra with less than three months’ notice.
“When it comes to shutting country branches, the Bendigo Bank is just as bad as the rest of them,” Mr Chester said.
“This is a disgraceful decision from a bank which pretends to care for regional customers and then does exactly the same thing as the ‘big four’ banks.
“In the case of Yarram, the bank is saying it will transfer customer accounts to the Bendigo Bank branch in Traralgon which is 64 kilometres away, and takes 50 minutes to drive in good conditions. “What about older residents, people with disabilities, community groups, or small business people who need access to a branch, cash, and face-to-face service?
“The bank executives who made this decision are demonstrating their contempt for regional people and their obsession with the bank’s bottom line. They should hang their heads in shame.
“I’m certain the Bendigo Bank in Yarram is a profitable operation and there’s been no consultation with the local community about alternatives to a complete branch closure.”
Mr Chester said he had written to the bank and urged the senior executives to review the decision immediately.
“The bank is claiming it has ‘sought to minimise any impact on customers’ and has taken into consideration the ‘proximity of other service locations’ but forcing Yarram customers to drive to Traralgon is an abuse of their power,” Mr Chester said.
“Why should loyal customers have to pay for petrol to access their money in the middle of a cost of living crisis?
“The bank claims it undertook ‘a review of evolving customer preferences’ but never consulted with my office, or anyone in Yarram, and is forcing this decision on the community with no respect for local needs.
Bendigo Bank statement
Here is the statement from the Bendigo Bank:
Following a review of evolving customer preferences, a reduction in business activity and an increase in costs, Bendigo Bank has made the difficult decision to permanently close its Korumburra branch and ATM on Friday, 29 August 2025 and its Yarram branch and ATM on Friday, 26 September 2025. The Bank apologises to its customers for the inconvenience.
Bendigo Bank is proud of its regional heritage and operates Australia’s second largest regional branch network. To preserve our ability to continue delivering for our customers and communities, we must ensure our branches are adequately supported and resourced.
The Bank is in the process of communicating this change to customers, and invites Korumburra customers to continue to transact face-to-face at Bendigo Bank Leongatha, located within 15km, and Yarram customers to continue to transact at Community Bank Toora & District, located 39km away:
* Bendigo Bank Leongatha, 12 McCartin Street, Leongatha
* Community Bank Toora & District, 48 Stanley Street, Toora
A spokesman for the Bendigo Bank said it was a difficult decision for the bank to make.
“We’re proud of our regional heritage and the fact that our head office is in regional Victoria, at Bendigo, the only regionally headquartered ASX100 company,” said a spokesperson for the bank.
“Bendigo Bank operates Australia’s second largest regional branch network and the third largest branch network overall,” he said.
Bendigo Bank, he said, maintains more branches per customer than any other Australian Bank.
“But we’re certainly mindful of the challenges that exist in regional communities and also the sensitivities around branch closures,” he said.
Our Leongatha branch is open Monday to Friday 9:30am to 4:00pm, features an ATM and can be contacted on (03) 5662 4000.
Community Bank Toora & District is open Monday to Friday 10:00am to 3:00pm and can be contacted on (03) 5686 2000.
Information for customers
A range of banking options are available to customers impacted by this change. There is no action for customers to take as there will be no impact to how their accounts operate.
Customers can continue to transact as normal at any Bendigo Bank branch, ATM or at any time via internet banking, our mobile app or by phone on 1300 236 344.?
Customers can also choose to bank in-person using Bank@Post at any of the 3,500 Australia Post outlets across Australia.?The nearest Australia Post LPO for Korumburra customers is located next door to the branch at 30 Commercial Street, Korumburra and the nearest Australia Post LPO for Yarram customers is located within 50 metres of the branch at 216 Commercial Road, Yarram.
Bendigo Bank maintains more branches per customer than any other Australian Bank. The Bank is committed to its branch network and the personalised interactions that occur in branch every day.
Customers given short shrift
Yarram business operator, David Phelan, was particularly annoyed that the customers were the last to know of the closure of the Yarram branch, especially given the short notice about the planned closure date.
After receiving a copy of a letter the bank sent to the Wellington Shire Council on Wednesday this week, June 25, 2025, he addressed his own letter to the management of the Bendigo Bank, copying in the media and local MPs.
“They were going to tell the customers on Friday, but I got on to the ABC on Thursday morning and made the announcement myself,” said Mr Phelan.
Here’s what he said to the bank’s management after receiving a copy of the bank’s letter to the shire:
Dear sir and madam, why would you bother informing the Mayor and CEO before you inform the people that bank with you, who have allowed the branch to keep making a profit and don’t tell me the branch isn’t. Why would your clients want to have their accounts transferred to Traralgon. I transferred our account to you when the CBA closed and have had a yearly turnover of over $20 million-per-year. We were left to find out the news on grapevine, might be a good job you’re leaving. Your customer focus is very poor. David Phelan.
See a copy of Bendigo Bank’s letter to the Wellington Shire HERE.
