"Most of the passengers were able to swim ashore," an official said. At least two persons were killed and eight others are missing in the accident which occurred in the southern coastal district of Barguna.
The vessel was carrying devotees from Kuakata. They were heading for Barguna to attend a religious festival at Chalabhanga darbar sharif, the Daily Star reported.
The rescue operations "are underway", Taltali Police Station Officer-In-Charge Babul Akter said.
"Cracks developed as the boat was overloaded, and ultimately it capsized," he said, adding that the number of missing people remain unknown.
Last month, rescuers recovered eight bodies from a fishing boat that capsized in the Bay of Bangal off the Bangladesh coast carrying migrants to Malaysia.
Last August, another ferry sank in a river in Bangladesh, killing about 130 people.