Kathmandu: Two people were killed and at least eight wounded in a bomb blast at a bus station in southeast Nepal, police said on Sunday.

A little known group called Terai Army claimed responsibility for the blast at Chandranigahapur in a telephone call to local newspapers.

"The victims were waiting for a bus when it was raining in the area," police officer Binod Kharel said.

The injured were admitted in a nearby hospital, he said.