A powerful earthquake struck Bangladesh on Friday outside the crowded capital Dhaka, killing at least three people, health officials said.

The 5.5-magnitude quake struck at 10.38am near the city of Narsingdi, about 33 kilometres from Dhaka, according to the US Geological Survey.

The Friday morning earthquake sparked terror with many in the Muslim-majority nation of 170 million people at home on their day off.

People could be seen weeping in the streets while others appeared shocked.

Three people were killed, including a medical student, the health department said.

The US Geological Survey warned of potentially "significant casualties" and damage.

The shaking lasted for 26 seconds with its epicentre in Narsingdi's Madhabdi district, according to the Bangladesh Meteorological Department, which recorded the magnitude as 5.7.

Strong tremors were felt as far as the Indian city of Kolkata, more than 325 kilometres away from the epicentre.

People could be seen fleeing offices and homes after the sudden jolt in the city.

"I felt tremors and my bed moved... I rushed out of my room," said Sumit Dutta, 66.

There were no immediate reports of casualties or significant damage in India. (AFP)