Nepal bus falls into river, killing 17

Police say an overcrowded bus drove off a mountain highway and crashed in a river in Nepal, killing 17 people and injuring 50 more.

Police official Madhav Kafle said the bus was packed with people returning from festivals and appeared to have a mechanical problem before skidding off the highway on Sunday.

Among the injured, 21 were still in hospital on Monday for medical treatment.

Kafle said the steering appeared to have failed before the bus drove off the highway and crashed in the Sunkoshi River 20 metres below.

The crash site is about 120 kilometres east of the capital, Kathmandu.