* 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.