This document reports the state of microfinance sector in Bangladesh. The sector has undergone tremendous transformation in all aspects over the last more than three decades following pioneering works of the Grameen Bank. The very visible changes are outreach and portfolio size, proliferation of microfinance through a large number of microfinance institutions, diversification of services, new regulatory regime, contribution in rural development, and recognition of microfinance and as a major contributor in poverty reduction. The methodology of Bangladeshi microfinance model has been replicated with or without variations in many countries and recognized as an excellent tool for poverty reduction. That has also brought international recognition in the form of Nobel Prize for Peace for Professor Mohammed Yunus and the Grameen Bank.