Consent of Independent Auditors


The Board of Directors
Jefferson Bankshares, Inc.:


We  consent to  incorporation by reference in Registration Statement No.
33-56025 on Form S-3, Registration Statement No. 33-56121 on Form S-8,
Registration Statement No. 33-60799 on Form S-8, and Registration Statement No.
33-57461 on Form S-8 of Jefferson Bankshares, Inc. of our report dated January
16, 1996 relating to the consolidated balance sheets of Jefferson Bankshares,
Inc. and subsidiaries as of December 31, 1995 and 1994 and the related
consolidated statements of income, changes in shareholders' equity, and cash
flows for each of the years in the three-year period ended December 31, 1995
which report is incorporated by reference in the December 31, 1995 annual report
on Form 10-K of Jefferson Bankshares, Inc. Our report refers to the adoption of
the Financial Accounting Standards Board's Statement of Financial Accounting
Standards No. 115, Accounting for Certain Investments in Debt and Equity
Securities, in 1994.



                                              KPMG Peat Marwick LLP

Richmond, Virginia
March 28, 1996