KPMG Peat Marwick LLP 
                              Suite 1900 
                         1021 East Cary Street 
                       Richmond, Virginia  23219 
 
 
 
 
                 CONSENT OF INDEPENDENT AUDITORS 
 
 
The Board of Directors 
Jefferson Bankshares, Inc.: 
 
We consent to incorporation by reference in the registration statement on
Form S-8 of Jefferson Bankshares, Inc. of our report dated January 16, 1996, 
relating to the statements of assets available for plan benefits of the
Jefferson Bankshares, Inc. Deferred Compensation and Stock Purchase Plan
for Non-Employee Directors as of December 31, 1995 and 1994, and the related
statements of changes in assets available for plan benefits for each of the
years in the three-year period ended December 31, 1995 which report appears
in the December 31, 1995 Annual Report on Form 11-K of Jefferson
Bankshares, Inc.



                                   KPMG PEAT MARWICK LLP
 
 
Richmond, Virginia 
January 14, 1996