When there is a promotion, will there be a standard percentage hike or will they try to push current salary to salary band of that level? What will be the bonus percentage and salary hike percentage for each rating given at the time of appraisal ?
Promos, by design, take you from higher in one level to lower in the next. +5% is typical during a promo, but if you're low in your current level, it'll be more to keep you in the "good" range for the new level.
Are stocks granted as well for promotions in Microsoft ?
No. Your stock target for the next annual review goes up though. It’s not much.
Most likely 5%
If you are in Azure, promotion can occur quartly. (So you can pretty much just go up for promotion whenever your manager is ready). At least at the lower levels. As for salary bump, they will at least bring you to the bottom of the next band. If this is a big bump then you were underpaid