The ferry was heading to Paturia from Daulatdia in Rajbari when it was hit by a cargo trawler, a senior police official of Manikganj district said.
The site is 40 kilometres northwest from here.
At least 35 people were killed in the incident, Rakibuzzaman, the officer-in-charge (OC) of Shibaloy Police Station, was cited by 'The Daily Tribune' in its report.
There were conflicting reports as to how many people were travelling in the ferry, with some media outlets putting it at 200 while others put the figure between 100 and 150.
'The Daily Star' reported six children and 11 women were among those killed, including a six-month-old girl, who after being rescued from the Padma river in which the ferry sank was later declared dead at the hospital.
The death toll is expected to rise.
The latest maritime tragedy is Bangladesh's deadliest since August last year when around 130 people were killed after a ferry sank in a river.
A survivor said his wife and mother-in-law are still missing.
Another survivor, who was near the edge of the ferry before it sank, said the people in the cabin did not get a chance to escape.
At least 60 people were rescued, according to the report.
The master of the cargo vehicle Nargis-1 and his assistant was detained on the charges of hitting the ferry. Their cargo trawler was also seized.
Ferry disasters are common in Bangladesh due to poor safety standards.
On February 13, at least five persons, including a minor, were killed when an overloaded ferry carrying 200 passengers, mostly devotees, capsized in the Paira river.
Last month, rescuers recovered eight bodies from a fishing boat that capsized in the Bay of Bengal off the Bangladesh coast carrying migrants to Malaysia.
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