(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) * FTSE 100 up 0.3%, FTSE 250 adds 0.2 % Nov 5 (Reuters) - London’s FTSE 100 rose on Friday, led by banks and healthcare major Astrazeneca, while British Airways parent IAG dropped after flagging a bigger-than-expected annual loss. The blue-chip FTSE 100 gained 0.3% by 0810 GMT, with drugmakers Astrazeneca and GlaxoSmithKline among the top performers. The banking sector rose 0.8% despite UK’s 10-year government bond yields at a one-month low after a surprise Bank of England decision on Thursday to hold off on raising interest rates. The domestically focussed mid-cap index advanced 0.2%, with retail stocks among the best performers. IAG fell 0.7% after it warned of a bigger-than-expected loss of 3 billion euro ($3.5 billion) for 2021, as pandemic restrictions and the partial closure of the transatlantic market continued to hold back travel recovery. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Subhranshu Sahu)