tat - this; dṛṣṭvā - seeing; bhagavān - the Supreme Lord; kṛṣṇaḥ - Kṛṣṇa; priyāyāḥ - of His beloved; prema - by pure love of God; bandhanam - the bondage; hāsya - of His joking; prauḍhim - the full import; ajānantyāḥ - who could not comprehend; karuṇaḥ - merciful; saḥ - He; anvakampata - felt compassion.

Seeing that His beloved was so bound to Him in love that she could not understand the full meaning of His teasing, merciful Lord Kṛṣṇa felt compassion for her.