Although Pershad was born in 1864, his exact date of birth is unrecorded. He claimed to have been “born two years before his highness [ Mir Osman Ali Khan ]”. Pershad was a direct descendant of Raja Todar Mal, the finance minister of Mughal emperor Akbar. Pershad’s ancestor, Rai Mull Chand, migrated from Delhi to Hyderabad with Asaf Jah I. His grandfather Narinder Pershad served as dewan and peshkar (deputy minister) during the reign of Mahbub Ali Khan. They were Hindu by faith and belonged to the khatri caste and the suryavanshi family.
In his youth, Pershad was disinherited by his grandfather Narinder Pershad in favour of his younger brother. Subsequently, he was patronised by Salar Jung I and was educated along with his sons in a western school. Pershad studied accountancy, medicine, religion, astrology and sufism. Besides these, he learned martial arts, Mughal etiquette and court grooming at his school. Pershad studied the Sanskrit language because of his Hindu faith and accountancy because he had the hereditary charge of the royal treasury.
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