The Hyderabad taluka was a mofussil (small town) and had a large population of Sindhi Hindu Lohanas, an Indian caste of merchants and traders.

There was a lesser population of Muslims who had been converted, after Muhammad bin Qasim's conquest of Sindh, principally from Bhaibands and had adopted Memon or Khatri (derived from Kshatriya) as their defining identity; these were mostly landowning zamindars.

[4] The Hyderabad Municipality, having already drafted plans for town expansion since its constitution in 1853, started developing a new residential neighbourhood, north of the old city bazaar, in order to accommodate the growing numbers of people.

Some Bhaibands and wealthier merchant firms followed, but still considered the older town a more favourable location even when Hirabad boasted better drainage facilities and electricity.

[10] A large number of Hyderabadi Amils and other Sindhi Hindu elites moved to Bombay and settled there as professionals or civil servants, however it was significantly harder for the Bhaibands and other lesser castes to weather the consequences of the partition.