Sensex, Nifty drop; public sector banks bounce back

(Reuters) - Indian shares ended lower for a third consecutive session on Tuesday, as private sector banks dropped but recovery was seen in state-run lenders, after sharp declines following the $1.77 billion fraud unearthed by Punjab National Bank (PNB) last week.

The benchmark BSE index closed down 0.21 percent at 33,703.59. The broader NSE index ended 0.17 percent lower at 10,360.40.

(Reporting by Tanvi Mehta in Bengaluru; Editing by Sherry Jacob-Phillips)