A bomb exploded at the start of Monday morning rush hour at the city's transportation hub and a man, said to be of Bangladeshi-origin, was arrested as a suspect, according to media reports.

Retired New York detective, Wally Zeins, told WNYW Fox TV that according to his contacts in the police department, the suspect was from Bangladesh and lived in Brooklyn.

WPIX TV also reported that according to police, the suspect was of Bangladeshi origin and he was injured when the explosive device went off and is hospitalised.

He came to the US seven years ago from Bangladesh, WABC TV reported.

Officials did not name the suspect, but said that he was in his 20s.

The bomb, which was likely a pipe bomb, did not cause much damage. Initial reports said that only four people were injured.

This is the second terrorist attack on New York in less than two months. A terrorist drove a truck into pedestrians near the World Trade Center on October 31, killing eight people.

The explosion took place in a passageway connecting trains in the Times Square underground metro system adjoining the interstate bus terminal disrupting the modern commute for thousands of New Yorkers.

The Port Authority Bus Terminal was evacuated and shut down as scores buses headed to the city from suburbs and other states. The Times Square subway station, the city's busiest was closed.

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