Thomson ReutersFebruary 7, 2013 13:45
* FTSE 100 drops 1.1 percent
* UK index underperforms European peers but still up YTD
* Banks fall with new BoE governor less dovish than thought
* Burberry plunges 4.6 pct on China sales worries
By Alistair Smout
LONDON, Feb 7 (Reuters) - Britain's blue chip shares fell sharply on Thursday as traders took profits on an index that has outperformed Europe this year, with banks leading losses after comments by key policymakers.