MUMBAI, April 27 (Reuters) - India's Yes Bank reported a bigger-than-expected rise in net profit for the January-March quarter on Saturday, helped by a drop in loan-loss provisions and higher non-interest income.

The Mumbai-based private lender's standalone net profit more than doubled to 4.52 billion rupees ($54.2 million) for the financial fourth quarter from 2.02 billion rupees in the same period a year earlier.

That exceeded analysts' average forecast of 3.41 billion rupees, according to LSEG data.

Provisions and contingencies, or funds kept aside for potential bad loans, fell to 4.71 billion rupees from 6.18 billion rupees.

Yes Bank had set aside more money in the year-earlier quarter after transferring bad loans to private equity firm J.C. Flowers.

Its gross non-performing asset ratio improved to 1.7% at the end of March from 2% at the end of December.

The bank's other income – the fees earned from providing non-lending services to customers – rose 56.2% on year.

Net interest income, the difference between the interest earned on loans and paid to depositors, rose 2.3% to 21.53 billion rupees.

Net interest margin, a key profitability measure for banks, dropped to 2.4% from 2.80% a year earlier, and was flat on a quarterly basis.

Most Indian banks have been shoring up their deposit base amid tightened liquidity conditions in the banking system and healthy demand for loans. That has weighed on their lending margins.

Yes Bank's loans grew 12.1% on year, while deposits rose more than 22%.

($1 = 83.4000 Indian rupees) (Reporting by Siddhi Nayak; Editing by Tom Hogue and William Mallard)