A police official in Khulna said unidentified miscreants hurled the bombs in front of a number of parked cars while the Indian envoy was in a meeting with the local chamber leaders.
Assistant police commissioner Abul Kalam Azad said the explosions slightly wounded three people, including his driver, but the cars were undamaged and a massive manhunt was launched to track down those who exploded the bombs.
"We suspect that activists of Jamaat-e-Islami exploded the bombs ahead of their planned general strike in the (Khulna) district to create fear among public so their programme could be enforced...we think it is a stray incident," the official said.
A local journalist who was covering the envoy's programme said the explosions came as Saran was about to complete his address at Chamber of Commerce and Industries building.
The Indian High Commission officials said the envoy went to coastal Khunla region on Friday to survey cyclone affected areas as a project was underway there with Indian assistance for rehabilitation of the victims.
Last month, a low intensity crude cocktail bomb exploded outside a hotel in Dhaka during President Pranab Mukherjee's visit amid a general strike in called by fundamentalist Jamaat-Islami to protest the conviction of three of its top leaders for 1971 war crimes.