LLOYDS Bank has agreed to pay back £3,000 that was stolen from a grandmother's handbag while she was in a city centre bank.

Yesterday the Oxford Mail reported that Zahida Aziz, 64, was left devastated after two women distracted her while she was at the counter of the bank's Carfax branch on Monday and took the cash.

But her daughter Shaista has now revealed Lloyds Bank said the bank has since called the 64-year-old and agreed to return the money to her account.

Ms Aziz said: "We are grateful for the kind support from family and friends and pleased the bank eventually did the right thing."

Mrs Aziz had gone to the bank to withdraw cash and pay bills.

She took out £3,000 in cash and placed it in her handbag, which she set in front of her on the cashier's desk.

She then began to pay a bill when two women, both white and about 5ft tall, appeared.

They by passed the queue and approached Mrs Aziz at the desk, placing themselves on either side of her.

The women confused her by asking her to sign something with a clipboard and pen.

Several hours later she noticed the money was missing.