The vessel's engine abruptly shut down yesterday when it reached the confluence of the Bay, triggering panic among its passengers.
As waves were pounding the trawler, its passengers tried to balance it by moving to both sides.
It caused the vessel to shake more and finally capsize.
Seven bodies have been recovered in the accident which occurred in the southern coastal district of Barguna, Daily Star reported.
Locals rescued most of the people with fishing trawlers as the accident took place near the shore, officials said.
Meanwhile, a financial assistance of 20,000 Bangladeshi Takka (USD 237) has been offered to the families of the victims.