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Turkish bank stocks fall, buck rise in Istanbul stock market

* Overdraft rate cap pressures banking sector

* Automaker Tofas boosted by Doblo investment plans

* Lira eases, bonds weaker

ISTANBUL, May 28 (Reuters) - Turkish shares tracked gains in global equities on Tuesday but banking stocks continued to fall on concerns about the impact of a new cap on interest rates on overdrafts.

Shares in automaker Tofas outperformed, climbing 2 percent on news of a 268 million euro ($347 million) investment in its new Doblo van project.

Bonds and the lira weakened.

Istanbul's main share index ended the morning session 0.24 percent higher at 90,766.07 points, mirroring gains in global equities as signals of policy support from Japanese and European central banks supported sentiment.

However, the banking index fell 0.47 percent, extending losses on Monday after the central bank halved the maximum interest rate that banks can charge on overdrafts to 2.22 percent.

The stock market has seen profit taking since Moody's elevated Turkey to investment grade status on May 16, in a long-awaited move, and analysts said it remained vulnerable.

"But domestically profit taking after the Moody's (upgrade) decision is continuing and the resistance of the Bourse Istanbul to limited negative developments such as the news on overdraft interest rate limits is currently weak," Finansinvest said in a note.

Turkish Banking Association Chairman Huseyin Aydin said the cap on overdraft rates would lower banking sector profits by 2 to 5 percent.

Garanti Bank dropped 0.94 percent, Denizbank was down 0.92 percent and Vakifbank fell 0.9 percent.

Tofas ended the morning up 2.07 percent on news of its Doblo project, under which it expects to export around 175,000 units of the light commercial vehicle to North America between 2014 and 2021.

The two-year benchmark bond yield rose to 5.28 percent from 5.23 percent on Monday, well off its all-time low of 4.61 percent earlier this month after a 50-basis-point interest rate cut, designed to boost the economy.

The lira weakened slightly to 1.8496 against the dollar from 1.8472 late on Monday. (Writing by Daren Butler; Editing by Susan Fenton)