The deafening blast occurred at about 8.30 a.m. on Abdarra road in the University Town area of the city, Xinhua cited TV channel Duniya as reporting.
The explosion caused panic in the area and TV footage showed buildings and cars that were extensively damaged.
Police sources said initial investigations revealed that it was a remote controlled blast.
No group has as yet claimed the responsibility.
Published 20 May 2011, 05:21 IST