This paper will discuss some of the challenges confronting the banking industry of Bangladesh, particularly  focusing on  the state owned commercial banks (SCBs)  in view of the Hall Mark case. Hence the major objective of the paper  is to examine how far the exposed performance indicators of the SCBs are credible and whether the SCBs have been able to meet the emerging domestic and global demand  in terms of better services and newer products.  The  paper  also makes a number of recommendations for a healthy banking sector and to prepare for the emerging challenges.