New Delhi, Sept. 30 -- Indian state-owned companies are likely to keep tapping overseas dollar debt despite its higher cost, as they seek to diversify funding sources, a senior executive at HSBC India said.

As part of a wider push to attract dollars into India and prop up a sagging rupee, the Reserve Bank of India (RBI) announced subsidized windows to tap overseas debt. While the foreign currency non-resident (FCNR) deposit scheme ended pre-emptively on 31 August, windows for external commercial borrowings (ECB) and overseas foreign currency borrowings remain open till 31 December.

Till 18 September, these windows led to inflows of $143.6 billion, with 93% of it coming through FCNR deposits, showed RBI data.

"I would say that maybe for...