Neither Blogger nor Google will penalize you for removing/hiding the navbar, but for providing such a great platform for blogging, according to me every blogger must show their gratitude to Blogger, either by showing a small Blogger Button, or by showing the navbar.
If the navbar doesn’t fit well with your present template, then here’s a simple script to auto-hide the navbar, but it will be shown to the visitors as soon as they hover their mouse-cursor over it.
To enable the navbar-toggle feature in your blog, follow these instructions:
Log in to Blogger -> Layout -> Edit HTML
Download and save your present template.
Then find(CTRL+F) a code similar to this in the template:
Any code in your template, with id=’navbar’ and visibility=’hidden’ hides the navbar completely, so you have to remove this code.
And replace the above code with this one:
/* Blogger Navigation Bar */
That’s it !