Search and Rescue work is continuing at the site and there are fears the death toll will rise sharply as more bodies are found.
The accident took place on the Sugandha River in Jhalakathi when a fire broke out in the engine room of the MV Abhijan-10.
The ferry had left the capital Dhaka and was heading to the southern district of Barguna, officials said.
Ferry incidents occur frequently in Bangladesh due to structural defects, severe weather, overcrowding, and non-compliance to safety standards. (ILKHA)