UPDATE 3-Singapore's cenbank says digital services disruption at DBS 'unacceptable'

(Adds comment from DBS' CEO in third and fourth paragraphs)

By Yantoultra Ngui and Kanjyik Ghosh

March 29 (Reuters) - Singapore's central bank said on Wednesday that a half-day disruption in the digital services of DBS Group Holdings was "unacceptable" and that the country's largest bank may face "supervisory action".

DBS faced a two-day disruption to its digital banking services in late 2021, which prompted the Monetary Authority of Singapore (MAS) to impose an additional capital requirement of about $692 million on the bank in February last year.

In a statement late on Wednesday, MAS said the disruption of DBS' digital services was "unacceptable", and demanded that the lender conduct a "thorough investigation".

"MAS will take the commensurate supervisory actions against DBS after gathering the necessary facts," it said, without providing any further details.

DBS said in a post on Facebook that its services had now returned to normal and that it continues to monitor the situation. "We appreciate your patience and are sorry for the inconvenience caused," the lender, which is also Southeast Asia's largest said.

In a separate statement, DBS CEO Piyush Gupta said the bank was disappointed that many of its customers were unable to access its digital banking services on Wednesday.

"We hold ourselves to higher standards and it is our utmost priority to review the events of today," he said, adding that the lender deeply regretted the inconvenience caused.

DBS shares ended slightly lower at S$33.59 on Wednesday. (Reporting by Yantoultra Ngui in Singapore and Kanjyik Ghosh in Bengaluru; Editing by Sharon Singleton and Marguerita Choy)