Earlier this year, the bank said it aimed to shut down the entire network of 164 branches by November, but it is now assessing its options.
It noted in a statement that "customers will continue to use the C&G network as usual" while the review is ongoing, adding that employees have been briefed on the situation by their managers.
The news is likely to have been welcomed by those C&G workers who are facing losing their jobs as a result of the planned closures.
Unite, the trade union that represents C&G employees, praised the decision.
"This news will bring some relief to the 900 staff who work in C&G branches up and down the UK," national officer Rob MacGregor stated.
However, he added that the announcement came with "no warning" and criticized Lloyds for not having a long-term plan in place regarding C&G's future.