"One victim died while undergoing treatment, the other two are in the hospital," Nepal Police said.

A man died and two were injured in a bomb attack outside a telecom company office in the Kathmandu Valley, Nepali police said Saturday.

The explosion occurred on Friday outside the office of private telecom company Ncell in Lalitpur district.

Nepal has enjoyed a relatively peaceful environment since the end of a decade-long civil war which concluded with a peace deal struck in 2006.

"One victim died while undergoing treatment, the other two are recovering in the hospital," Nepal Police spokesman Uttam Raj Subedi told AFP.

The blast shattered windows of other buildings in the area.

There was no immediate claim of responsibility but police have arrested six people.

Mr Subedi said that there were reports of arson attacks on other Ncell towers in the country and that a police investigation was underway.

Ncell, Nepal's largest private telecom company, is part of Malaysia-based Axiata Group Berhad.