A low intensity explosion in a state transport bus at Manchar terminus, approximately 40 km from Pune, caused panic on Monday night even as a team of the Anti-Terrorism Squad rushed to the site to investigate the incident.

Gelatine sticks were used in the device that had been kept under the back rows of seats in the bus, which was stationary at the terminus at the time of the blast, said ATS Inspector Peter Lobo.

While the bus suffered minor damage, none of the half a dozen passengers who were seated in the front rows were injured in the blast, he said.

"We are carrying on a parallel investigation with the police to find out whether the act was a mischief to create panic by local culprits or was the handiwork of other suspected elements," the ATS officer added.