The Mandi Khatris are of mixed descent, Kayathas of Hindustan and Khatris of the Punjab have intermingled. Khatris are mercantile class and observe Hindu sacraments equivalent to Rajputs.

The Khatris of Mandi are split into Lamkiyaru, Kayath, Kalru, Drangwal, Baid, Bisajhu, Ror, Saigal, Kamiana, Hatwalu, Paharu, Kahluria, Jukhwaha, Dhon, Bhangalia, Maheru, Had, Pajiali and Naryal. There are some Kayath Khatris who trace their origin from the Bhatnagar Kayath to Lucknow and Oudh. Verily, Khatris have been money-lenders, accountants, clerks and court officials of the State.

With the dawn of new age Khatris of Mandi are known with surnames Kapoor, Malhotra, Vaidya (perverted form of Baid) and Handa. Khatris of Mandi have left their mark on the annals of Mandi State owing to their mental alertness quick wittedness and tribal consciousness.