Thanks for making me famous trahul4. What I have heard is that if you background is Quant strong (IT/Engineering etc.) then Adcoms pay particular interest to your Verbal score and vice versa.
Also I keep hearing about things like affirmative action, where if you belong to an underrepresented minority (i.e. Hispanic , Native American Indian, African American) you can get away with a slightly lower GMAT score.
However if you belong to the already flooded Asian demographic , things might be a bit more difficult with a score under 700.
the question of retaking depends on your profile . If you are an IT engineer from India then you need to retake .. if your profile is somewhat different from this and you feel its interesting you can give a try..
Anyway if you decide to retake , make sure to bump your verbal score. Your score also shows that to get 700+ on GMAT, you need to really get your verbal upto 38-40 level with quant 48+ .
For your info, a member of this forum bsd_lover scored 720 with Q48 V40 . This just shows how much verbal score is important to cross 700 barrier ..