The incident occurred when members of two sects clashed with each other and engaged into brick batting, arson and opened fire in Hussainabad in Thakurganj area late night.
Two persons, including a woman, were reported to have suffered bullet injuries, besides some others were injured in brick batting, district magistrate Anurag Yadav said.
On being asked whether firing took place between the two sects, he said it was not clear since it was dark.
According to police sources, the mob damaged vehicles and vandalised shops as tension prevailed in the old city area till late night and altercation continued from both the sides.
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Meanwhile, SP spokesman and Prison Minister Rajendra Chaudhary said that the government would compensate to the people, who suffered loss in yesterday's violence.
Appealing to members of both the sects to maintain calm, Chaudhary said the government would extend free medical facility and other help to injured.
Tension has been prevailing in the old city area since yesterday after two groups of same sect clashed and engaged in bricking batting and arsoning during 21st Ramzan procession in Bazar Khala area here.
"Stray incidents took place, but mischievous elements will be dealt with strongly," IG (law and order) R K Vishwakarma had told reporters here.
He said that tight security arrangements would be made in the city for Alvida Namaz tomorrow.
Force has been provided from neighbouring districts including Hardoi, Sitapur, Barabanki and Unnao, he said.
The IG said that in addition to this 11 company PAC, four of range reserve, two of rapid action force has been provided. "Videography will also be done," he said.