The incident sparked an independent review, Te Whatu Ora Health New Zealand Southern (HNZS) confirmed.
The 56-year-old woman, who the Otago Daily Times has chosen not to name, appeared in the Dunedin District Court this week where she pleaded guilty to demanding with menaces.
On June 28, the defendant walked into the City Mini Market in George St and went to the counter, handing the cashier a note.
"I have a gun and I’m prepared to use it. Give me all your money and vapes or I will shoot you," it said.
The woman walked out with $126 of goods but there was no slick getaway.
She put the stolen items on the ground in Moray Pl then re-entered the shop.
Again she demanded cash and vapes, and this time she pointed something concealed inside her jacket pocket at the shopkeeper.
It was not a pistol.
It was a banana.
The defendant threatened several times to shoot the man, causing him to fear for his life, police said.
"Moments later, the defendant was arrested in the store with the banana still in her possession," court documents stated.
The woman’s reasoning in the aftermath provided evidence of her confused mental state.
"The defendant stated that she understood robbery was wrong but it’s better to scare people than kill them, and that she couldn’t kill them with a banana," the summary of facts said.
A psychologist assessed her and advised a defence of insanity was not available, despite the woman experiencing hallucinations at the time of the incident.
Since the defendant remained an inpatient, the report writer urged the court to consider "alternative options".
Judge David Robinson acknowledged his approach to the charge — which carries a maximum of seven years’ imprisonment — would have to be "a little unusual".
He imposed a 12-month deferred sentence and explained to the woman that if she stayed out of trouble for the next year, there would be no further punishment.
"The best thing for you is to keep you in hospital receiving the care you need," the judge said.
HNZS mental health, addictions and intellectual disability services medical director Dr Evan Mason expressed his "deepest sympathy" for those affected by the crime.
"We are working closely with the patient and their family to provide them with all the appropriate care and support they need at this time," he said.
Recommendations from the review, undertaken by a senior clinician from an external mental health service, were currently being implemented.
