Q:

How can I delay sshd login after bad password

How can I delay the retry response from SSH  when a bad password is tried or unsuccessful login attempt.  I wanted the delay to be 2-3 second more that usual. 
I could not find any option in sshd_config file to achieve the same. 
So can anyone let me know how should I go about it. 

A:

If you block all user even block root you can add this lines to /etc/pam.d/password-auth or /etc/pam.d/sshd, in the auth section add this to block all user for 5 minutes:
auth        required      pam_tally2.so  file=/var/log/tallylog deny=3 even_deny_root unlock_time=300

Now add the following line to the account section:
account     required      pam_tally2.so

Finaly restart your sshd and it should work.  After this you can check for fault logins with the command: pam_tally2 You will get this output:
# pam_tally2
Login           Failures Latest failure     From
userxy            4    12/10/13 09:52:31  192.168.100.100

