The Regional Rural Banks were established on the recommendations of Narsimha Committee on Rural Credit. Considering the recommendations of the committee the Government of India passed Regional Rural Banks Act 1976 and established RRBs in different parts of India. The main aim of establishment of Regional Rural Banks to develop the rural economy.

Under the amalgamation process in 2005 RRBs of same sponsor banks were merged. Accordingly,
1. Panchmahal Vadodara Gramin Bank,
2. Surat Bharuch Gramin Bank and
3. Valsad Dang Gramin Bank
were amalgamated as Baroda Gujarat Gramin Bank. Similarly,
1. Banaskantha Mehsana Gramin Bank,
2. Kutch Gramin Bank and
3. Sabarkantha Gandhinagar Gramin Bank
were merged in as Dena Gujarat Gramin Bank.

Government of India vide its gazette notification number 855, dated 22-Feb-2019 announced to amalgamate 2 RRBs namely Baroda Gujarat Gramin Bank sponsored by Bank Of Baroda and Dena Gujarat Gramin Bank sponsored by Dena bank effective from 01-Apr-2019. The name of new entity remain same as “Baroda Gujarat Gramin Bank” under sponsorship of Bank Of Baroda.