DIAGNOSIS No, excessive heat in the handle points to high resistance in the battery contacts or a failing motor drawing too much current.
FIX First, clean the battery contacts on both the drill and the V20 battery pack. Use a pencil eraser or contact cleaner on the metal terminals. Heat is often caused by dirty contacts forcing electrons to work harder.
IF THAT DIDN'T WORK The motor armature may be shorting. Listen for a burning smell or see if sparks are visible through the vents. A shorted motor needs replacement; it's not worth rewinding.
HEADS UP Stop using it immediately if the heat is severe. This can damage the battery's internal protection circuitry, ruining a battery that costs nearly as much as a new drill.