Chennai, Sep 25 - City-based Cholamandalam DBS Finance, a non-banking finance company, has decided sell its mutual fund subsidiary Cholamandalam Asset Management to L&T Finance for Rs.45 crore.

'We have been taking several initiatives to strengthen the company's core business. Asset management business is not core to our scheme of things,' N. Srinivasan, director of Cholamandalam DBS, told IANS Friday.

Asked whether the group has also plans to exit the NBFC, he said: 'We don't have any such plans.'

Various players like banks and venture capital funds had showed interest in acquiring the asset management firm, but the final nod was given in favour of L&T Finance, Srinivasan said.

L&T Finance is a subsidiary of engineering and construction major Larsen and Toubro.

Founded in 1996, Cholamandalam Asset Management has assets under management worth Rs.2,900 crore across 24 schemes.

According to a statement issued by L&T Friday, the group believes its brand and reach will enable it build a robust and valuable asset management business.