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It had previously said that all 164 C&G branches would cease trading by November, but the decision has now been put on hold.
Lloyds said that customers "will continue to use the C&G network as usual" and the move is likely to be good news for those who had been set to lose their jobs as a result of the closures.
Unite, the trade union that represents C&G workers, criticised Lloyds for not having a long-term plan in place for C&G's future.
However, Rob MacGregor, national officer for the body, also welcomed the announcement adding: "This news will bring some relief to the 900 staff who work in C&G branches up and down the UK."
