The incident occurred when Howrah-Kathgodam Bagh Express hit a bus belonging to the DAV engineering college near Chap Dhala locality as it was trying to cross the track at about 3 PM. Under the impact, the engine of the train derailed, Superintendent of Police Nitash Gudia said.
Railway have ordered an inquiry by Commissioner Railway Safety K Bajpayee into the incident at the manned level crossing, a railway spokesperson said in Delhi.
Railway officials said seven people have died in the accident and over 30 people have sustained injuries.
While four occupants of the bus died on the spot, three others succumbed to injuries in Sadar hospital where all the injured were admitted, officials said, that the six of the seven dead have been identified.
The deceased included two women.
Critically injured were sent to the Patna Medical College and Hospital.
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The incident sparked protest by engineering college students who pelted stones at the train and tried to set it afire but police prevented them, official sources said.
Train passengers ran helter and skelter to escape the ire of protesters who dispersed after police used force.
Expressing shock over the loss of lives, Railway Minister C P Joshi announced an ex-gratia of Rs five lakh to the next of the kin of the deceased.
He announced Rs one lakh each for the seriously injured and Rs 25,000 to those who suffered minor injuries.