* FTSE 100 index down 0.2 percent
* Banks lower; European debt concerns remain
* Drugs weak; AstraZeneca hit by RBS downgrade
* BP gains; ousts exploration chief, vows to boost safety
By Tricia Wright
LONDON, Sept 29 (Reuters) - Weak banks dragged Britain's top share index lower on Wednesday on persistent concerns over European debt, while drug stocks were also under pressure, offsetting strength from BP.
The FTSE 100 closed down 9.17 points, or 0.2 percent, at 5,569.27, having quickly surrendered an opening push above 5,600.
Banks were the main drag on blue-chip sentiment, shedding 1.3 percent, as worries over the debt picture in Europe continued to have an impact, particularly concerns over the future for Irish banks.
"It's really just continuing the theme we've seen all this week. We've got a really choppy market with no real overall direction, and the worry at the moment is this debt crisis in Europe," David Jones, chief market strategist at IG Index, said.
Drug stocks also fell back, with AstraZeneca the worst off, down 1.9 percent after RBS cut its rating for the drugmaker to "hold" from "buy".
The broker said that "after a strong run of positive clinical newsflow ... many share price drivers have played out."
Metals group Vedanta Resources was the biggest FTSE 100 faller, down 4.3 percent, after its Sterlite Industries unit was ordered by a court to shut its Tuticor copper smelter in south India.
"The problem at the moment is that there's been no real major economic news for the markets to hang their hats on," IG Index's Jones said, adding that U.S. September non-farm payrolls, due on Oct. 8, should provide fresh direction.
BP BOOST
BP was in demand, up 3.9 percent, after saying it was to fundamentally restructure itself in the wake of the Gulf of Mexico spill, creating a new safety unit, reviewing incentives it offers managers, and splitting up its core upstream unit.
Defence company Rolls-Royce rose 3.5 percent after Morgan Stanley hiked its rating to "overweight".
Plumbers and builders merchant Wolseley grabbed the top spot on the blue-chip leader board, climbing 6.4 percent, with traders citing U.S. mortgage data given the company's big exposure to the world's largest economy.
"I know (the U.S. mortgage market index) has come in lower than expected, but I would imagine that given the doom and gloom out there, then (people have) priced in a really bad number and (they) are quite happy with the way things are going," Yusuf Heusen, senior sales trader at IG Index, said.
On the domestic economic front, British mortgage approvals for house purchases fell to a seven-month low in August, and net consumer credit unexpectedly contracted, according to official data. (Editing by Louise Heavens; Graphics by Scott Barber)