"We've made a decision to stop airing the channel across the country", Xinhua news agency quoted Industries Minister Amir Hossain Amu as saying.
A Dhaka-based newspaper, The Daily Star had first reported that Naik's speeches were allegedly responsible for inspired some of the Bangladeshi terrorists, who killed 22 people, mostly foreigners, at an upscale restaurant in Dhaka last Friday.
The community members on Saturday came out and raised slogans against Naik and other extremist leaders.
Police will also investigate Naik's source of funding, properties and operators telecasting his speeches across the Indian state.
Khan said the investigators were also probing Naik's financial transactions in Bangladesh.
Calling Islamic preacher Zakir Nayek's speeches objectionable, the central government on July 8 said the home ministry will take an appropriate action against him only after studying his speeches.
On Friday, supporters of Naik took out a solidarity march in Srinagar to condemn any action that might be taken against him.
The Maharashtra government has ordered a probe into Islamic preacher Zakir Naik's speeches that were reported to have inspired some of the Dhaka, even as the central government asked intelligence agencies to track the tele-evangelist's alleged hate speeches. According to a media house, the terror module's head Mohammad Ibrahim Yazdani reportedly told the NIA during his interrogation that his inclination towards violent outfits working to establish Shariah law was also because of Naik. They told me that they do not believe I inspired these terrorists to do this act of killing innocent people.
The Indian Union Muslim League today came out in support of preacher Zakir Naik, saying the "advocate of peace theory in Islam" is being harassed for no "valid reason". Bangladesh Information Minister Hasanul Haq Inu said his ministry will evaluate the issue and adopt administrative measures to take the channel off air on Monday.
After the Dhaka terror attack, the Bangladeshi government has sought action against Zakir Naik.