It is shown that a single, strongly scattering impurity produces a bound or a virtual bound quasiparticle state inside the gap in a $d$-wave superconductor. The explicit form of the bound state wave function is found to decay exponentially with angle-dependent range. These states provide a natural explanation of the second Cu NMR rate arising from the sites close to Zn impurities in the cuprates. Finally, for finite concentration of impurities in a $d$-wave superconductor, we reexamine the growth of these states into an impurity band, and discuss the Mott criterion for this band.
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