A step drill bit has a cutting head defining a longitudinal axis and having a plurality of steps having different effective diameters. First and second cutting edges are formed in the cutting head. The first cutting edge and the second cutting edge are arranged such that the bit is asymmetric in a plane perpendicular to the longitudinal axis relative to a plane containing the longitudinal axis. A rubbing surface is formed on each step where the rubbing surface extends to approximately the effective diameter of that step such that the first cutting edge, second cutting edge and the rubbing surface forms three points of contact with the side wall of the hole being cut.