Of course it wasn't racist !! We hear bantering like this every day between friends calling each other what could be interpreted in a derogatory way if twisted. Anyone who has had teenage lads in their house will know how they 'insult' each other all the time; just light-hearted fun though ...
Never heard the other expression for the Hindus before, but I have now ...
What got me was the this spokesman from the Ramadhan Foundation says that an apology does not make it right ... "he should now reach out to show his remorse to the Pakistani population".
Shall we put him in the stocks, so that the 'offended' can pelt bad eggs at him ?