New Delhi, May 15 -- Long-term investment in green bonds is expected to give substantial returns, says a report by the State Bank of India (SBI).

The report highlighted the increasing importance of green bonds, especially at a time when India is witnessing rapid urbanisation and growing environmental concerns.

"The launch of green bonds assumes crucial importance and long-term investments in green initiatives yields more substantive results over time" the report said.

According to SBI Research, green finance can play a major role in tackling the negative effects of urbanisation on the environment.

India is urbanising quickly, and as per Census 2011, the urban population was 31.1 per cent of the total. This figure is expected to rise t...