The powerful blast killed at least nine people and injured nearly 33 people, some of them critically.
Addressing a a press conference here, Chidambaram said, "There is no intelligence failure, many soft targets need to be monitored," he said.
Chidambaram noted that the area had been on terror radar for some time.
He said, "Chabad house and Osho Ashram were on target. The police has sensitised all institutions and organisations in and around the area."
"It appears that one or more person seems to have come to the German bakery, left his back pack under the table and left the table quietly," said Chidambaram.
The Home Minister said that the anti-terror squad (ATS) had taken over the case.
He announced a compensation of Rs five lakh to the families of those killed in the attack.
Chidambaram also said that it would be premature to draw any conclusions. However, he admitted that David Coleman Headley had surveyed the area.