The blast occurred inside a house in Kuli Bazar area around 10 AM triggering panic among the residents who informed the police immediately, they said.
The rescue team recovered dead bodies of Sayeeda, 30, and Ruby from the rubble, Additional District Magistrate (City) Avinash Singh said.
Three more injured, including a child, were recovered and sent to the hospital where their condition is stated to be serious, he said.
According to local residents, the blast took place due to leakage in gas cylinder.
City administration and police are probing the incident, the ADM said.