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No injury or casualty was reported in the mishap.
Raj Kumar was driving the bus to Poddar International School located in Khar suburb on Wednesday when the vehicle hit the high-end car of a businessman, the official said.
The angry businessman then confronted the driver for causing damage to his car.
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The car owner and the policemen then went inside the bus and they were shocked to see the bamboo stick in place of the gear lever, he said.
Kumar, who was subsequently arrested for negligent driving, told the police that the bus gear knob had broken some days back and since then he was using the bamboo stick as gear lever, the official said.
“All the students inside the bus were safe,” he said.
The driver was later produced in a local court which granted him bail, he said, adding that a probe was underway into the incident.