The second largest private sector lender said the interest rate offering, which is valid till March 31, is the lowest in a decade.
Kotak said in a release that the MoU enables Kotak to offer its salary account proposition, combined with exclusive benefits for the Indian Army, to all army personnel - both active and retired.
Kotak said that the divestment was done to comply with prudential limit stipulated by the Reserve Bank of India on investment in a non-financial services entity.
For the existing customers, the interest rates will get repriced 0.05 per cent automatically on the existing interest rates.
Prime Minister Narendra Modi too took his first shot of vaccine, Bharat Biotech's Covaxin, on Monday.
Kotak was speaking with TNIE Editorial Director Prabhu Chawla during e-expressions, a TNIE series of live web casts with people who matter.
In a call with the media after the results, the Kotak management said the provisions would take care of the risks that the bank anticipates right now.
The court took into cognisance a complaint filed by Bharat Kumar of Universal Packers and Movers alleging that Magma Fincorp and Kotak bank have cheated him.
On a standalone basis, it reported a profit after tax of Rs 2,184 crore for the July-September quarter, up 27 per cent compared to the year-ago period.
Provisions and contingencies fell 9.6 percent to Rs 368.59 crore compared to year-ago period, while the sequential fall was 61.7 percent.
Buying cos an objective of recent capital-raising move: Kotak Mahindra Bank amid IndusInd Bank merger buzz
There were reports of KMB exploring an all-stock merger with IndusInd Bank late Sunday evening.
Kotak feels that India will need to set its immediate focus on saving lives and jobs, even as its ramps up spending on healthcare and education.
HDFC Bank's market valuation zoomed Rs 46,036.95 crore to Rs 5,67,697.09 crore and that of Kotak Mahindra Bank advanced Rs 30,888.39 crore to Rs 2,65,080.63 crore.
From Monday, daily balance of over Rs 1 lakh will earn 4 per cent interest as against the 4.50 per cent earlier, while those under that threshold will earn 3.50 per cent, the bank said.
The COVID-19 crisis is expected to have a heavy impact on the economy and many corporates have been cutting salaries.