Bangladesh moved four steps ahead in the FIFA-Coca-Cola World Ranking in July 2014 clinching 163rd position from their previous ranking of 167, reports UNB.
Among the eight Saarc countries, Bangladesh was placed 4th after Afghanistan (129), India (151) and Maldives (153).
Nepal (164), Pakistan (165), Sri Lanka (178) and Bhutan (208) fell behind Bangladesh.
New world champions Germany took number one spot for the first time in two decades dropping former world champions Spain to the 8th place.
World Cup finalists Argentina advanced to the 2nd slot while the World Cup's 3rd finishers the Netherlands jumped to the 3rd place after their impressive run to the semi-finals in Brazil.
World Cup hosts Brazil have dropped four places to seventh while Colombia moved up to fourth.
There are also gains for Belgium and France.
A fall of ten places following a poor World Cup means Roy Hodgson's England side are now behind Bosnia and Herzegovina, Costa Rica and the United States.
England have fallen to 20th in the latest FIFA world rankings after a long time.
Latest FIFA Top 20 rankings: 1 Germany, 2 Argentina, 3 Netherlands, 4 Colombia, 5 Belgium, 6 Uruguay, 7 Brazil, 8 Spain, 9 Switzerland, 10 France,11 Portugal, 12 Chile, 13 Greece, 14 Italy, 15 USA, 16 Costa Rica, 17 Croatia, 18 Mexico, 19 Bosnia and Herzegovina, and 20 England.
