Asymmetric diamond impregnated drill bit

A drill bit including a bit body and a plurality of blades formed in the bit body. The blades are formed, at least in part, from a base matrix material that on one embodiment is impregnated with abrasive particles. One side of the bit is formed, with respect to its axis of rotation, to a smaller radius than the opposite side of the bit. The asymmetry of the bit enables the bit to drill a larger diameter hole than a pass through diameter of the bit. The opposite side defines a contact angle between the bit and a formation. In one embodiment, the contact angle is at least 140 degrees.. In one embodiment, a plurality of inserts may be located on the blades to provide gage protection. In another embodiment, the bit may also include a gage sleeve that helps keep the bit stabilized in the wellbore.