The condition of one of the injured, Ghulam Hussain Thebo, was stated to be serious.
The blast, which occurred at 6:50pm in front of the Risala Road branch of the MCB in the City police limits, sent body parts and pieces of shattered glass flying to the nearby shops.
The bomb was planted under seats No 7 and 8 on the right side of the bus which was going to Hala Naka.
The identity of the deceased could not be ascertained.
The injured were identified as Qurban Ali, Ghulam Hussain Thebo, Raheem Bux, Attaullah, Hira, Arun, Pervez, and police Lance Naik Shakir Mehmood.
Most of the passengers had boarded the bus from the Hyder Chowk.
According to the officials of the bomb disposal squad, the bomb was locally manufactured and fitted with a timer device.
The driver, according to bank guard Naeem Jan, fled after the blast. The Regional Police Officer, Abdul Rauf Yusufzai, denied that the bomb explosion was linked with the killing of Asif Ramzi.
Talking to newsmen at the Civil Hospital here, he attributed the explosion to the ongoing rivalries between different groups of transporters.
SUSPENDED: Regional Police Officer Hyderabad region Abdul Rauf Yusufzai late Saturday night suspended Qamar Raza Jaskani, DSP/TPO City Hyderabad, Inspector Abdul Ghani, SDI City and SHO police station city, Khan Nawaz, for their failure in controlling the bomb blasts in their jurisdiction.
The RPO has appointed DPO (investigation) Hyderabad Mr F Farid Jan Sarhandi to determine the failure of these police officers in controlling the bomb explosions.